FIRST SOLAR IN TROUBLE AGAIN

First Solar Under Investigation By The SEC For Topaz Disclosures
Jessica Lillian, 6 March 2012 (Solar Industry)

"The U.S. Securities and Exchange Commission (SEC) began an investigation into First Solar Inc. last fall, a new SEC filing from First Solar reveals. The probe focuses on potential violations…in connection with disclosures on Sept. 21, 2011, relating to the failure of the Topaz Solar Farm project to meet the statutory deadline to receive a federal loan guarantee from the U.S. Department of Energy (DOE)…

"The Topaz solar plant, a 550 MW project under development in San Luis Obispo County, Calif., received a conditional commitment for a DOE loan guarantee on June 30, 2011. However, on Sept. 22, the company announced that there would be ‘insufficient time to process all requirements’ before the loan-guarantee program's Sept. 30 deadline."

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"The SEC investigation was initiated to determine whether a disclosure breach caused the news of the loan-guarantee's failure to be released early. A Jefferies & Co. analyst wrote in an investor note on Sept. 21 - one day before First Solar's announcement - that he did not expect the loan guarantee to be finalized in time…based on media reports that the project had a potential buyer.

"First Solar responded to the potential disclosure violation by conducting an internal investigation and replacing its vice president of investor relations…[I]n November, the SEC announced it would forge ahead with its own investigation…[and a] separate investigation into the Topaz disclosure issue has been launched on behalf of First Solar's shareholders…by an unnamed law firm…First Solar's share price has dropped precipitously in recent years - from more than $300 in 2008 and more than $190 in 2009 to under $30 on March 2, 2012…"