Item 3. Legal Proceedings
ITEM 3 .
Legal Proceedings
In September, 2018, our German subsidiary,
SolarEdge Technologies GmbH, received a complaint filed by a competitor, SMA Solar Technology AG (“SMA”). The complaint, filed
in the District Court Düsseldorf, Germany, alleges that SolarEdge's 12.5kW - 27.6kW inverters infringed on two of the plaintiff’s
patents. In its complaints, SMA requests, inter alia , an injunction, rendering account about past
sales, a recall of products and a determination for a claim for damages for sales in Germany. SMA asserted a value in dispute of 5.5 million
Euros (approximately $5.9 million) for both patents. We challenged the validity of both patents. In December 2019 the District Court of
Düsseldorf found one of the two patents to be infringed upon and we appealed this decision to the Appeals Court Düsseldorf.
In the parallel nullity proceedings regarding this patent, in October 2020, the German Patent Court rendered the SMA patent invalid; this
invalidity was appealed by SMA and in January 2023, the German Supreme Court upheld the finding of invalidity. With respect to the second
patent, in November 2019 the first instance court stayed the infringement proceedings since it considered it to be highly likely that
the patent would also be invalid. In August 2021, the German Patent Court rendered this patent invalid as well, and this invalidity has
been appealed by SMA. We believe that we have meritorious defenses to these claims and intend to vigorously defend against this lawsuit.
On July 28, 2022, we were served with a complaint
by Ampt LLC filed with the International Trade Commission (the “Commission”) pursuant to Section 337 of the Tariff Act of
1930, as amended in the District Court for the District of Delaware alleging patent infringement against the Company and its subsidiary
SolarEdge Technologies Ltd. On October 24, 2022, the complaint filed in the District Court of Delaware was administratively stayed until
the Commission's action is resolved. We believe that we have meritorious defenses to the complaints and intend to vigorously defend against
them.
On November 3, 2022, we received notice
that a class action lawsuit was filed in the U.S District Court of the Southern District of New York against us, our subsidiary SolarEdge
Technologies Ltd., our CEO and our CFO, by a purported stockholder of the Company, alleging violations of the Federal Securities Act in
connection with complaints filed against us by Ampt LLC, as described in the preceding paragraph. On February 14, 2023, the lawsuit was
voluntarily withdrawn by the plaintiffs and subsequently dismissed by the court.
In addition, in the normal course of business,
we may from time to time be named as a party to various legal claims, actions and complaints (including as a result of initiating such
legal claims, actions or complaints on behalf of the Company). It is impossible to predict with certainty whether any resulting liability
would have a material adverse effect on our financial position, results of operations or cash flows.
ITEM 4 .
Mine Safety Disclosures.
Not applicable.
38
PART II