Every SEC Regulation Fair Disclosure ("Reg. FD")
enforcement action details a perceived mistake. In each such
instance, there is a "case study" for all public
companies. This remains true even when the proceeding is fairly
limited, such as the Commission's short order earlier this
month imposing a $50,000 penalty on Lawrence Polizzotto, First
Solar Inc.'s former head of investor relations.1
First Solar is a manufacturer focused on the solar energy
business. In the fall of 2011, First Solar was attempting to secure
loan guarantees from the Department of Energy ("DOE") for
three separate projects before a September 30 deadline. The
guarantees were important to First Solar because they would allow
the company to receive guaranteed low-cost financing from the
federal government. In a September 13, 2011 investor conference,
First Solar's Chief Executive Officer publicly expressed
confidence that the company would secure all three guarantees.
