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Faruqi & Faruqi Class Action Reminder for Nextracker Investors

Faruqi & Faruqi, LLP, a prominent law firm specializing in securities cases, is issuing a reminder to investors involved with Nextracker Inc. about a significant class action lawsuit. This lawsuit was filed following alleged violations of federal securities laws by Nextracker, and the firm urges those impacted to consider their legal options.

Class Action Overview

Faruqi & Faruqi has been investigating potential claims surrounding Nextracker, a company listed on NASDAQ under the symbol NXT. The firm emphasizes an important deadline for investors: February 25, 2025. This date marks the cutoff for investors looking to assume the role of lead plaintiff in the class action.

Key Allegations Against Nextracker

The lawsuit asserts that Nextracker and its executives misled investors regarding the company's operations and financial health. Specifically, the complaint includes the following allegations:
1. Severe Impact of Project Delays: It is claimed that the delays in projects affected Nextracker’s business performance more profoundly than communicated to investors.
2. Inability to Translate Backlog into Revenue: There are assertions that permitting and interconnection delays hindered Nextracker's historically established rates of converting project backlogs into revenue.
3. False Representation of Demand: The lawsuit challenges the company’s claims regarding its ability to manage project delays through a purported increase in client demand, suggesting these assertions were misleading.
4. Lack of Competitive Edge: According to the complaint, Nextracker did not possess the competitive advantages it claimed, casting doubt on its ability to mitigate industry-wide challenges as it suggested to investors.
5. Unfounded Positive Claims: The allegations conclude that Nextracker's positive claims about its business metrics lacked a valid foundation, ultimately misleading stakeholders.

Recent Company Developments

On August 1, 2024, Nextracker disclosed a notable decline in revenue, dropping from $737 million in Q4 2024 to $720 million in the first quarter of 2025. Additionally, the company’s GAAP gross profit mirrored this decline, decreasing from $340 million to $237 million over the same period. Crucially, this announcement marked the first instance where Nextracker did not enhance its earnings guidance since going public. This information triggered a roughly 15% drop in stock prices over two trading days, signaling increasing investor concerns about the company’s trajectory.

Lead Plaintiff Role

Acting as a lead plaintiff in a class action lawsuit entails taking an active role in overseeing the case. The designated lead plaintiff typically has the most significant financial stake in the outcome and ensures the interests of the entire class are represented adequately.

Investors who suffered losses exceeding $75,000 from their transactions with Nextracker during the specified timeframe—February 1, 2024, to August 1, 2024—are encouraged to act. They can either reach out directly to the firm’s partner, Josh Wilson, at 877-247-4292 or 212-983-9330 or visit Faruqi & Faruqi’s website for further information.

Conclusion

As the deadline approaches, Nextracker investors are reminded to evaluate their positions and consider their next steps. The opportunity to engage in this class action promotes not only legal redress for potential financial losses but also fosters accountability within the corporate sector.

With any inquiry or for further information on this or any related matters, investors are encouraged to contact Faruqi & Faruqi, as all communications will be kept confidential.

Faruqi & Faruqi LLP continues to uphold its commitment to representing the interests of investors, having successfully recovered millions in past cases since its inception in 1995.