NEW ORLEANS, May 3, 2024 /PRNewswire/ — ClaimsFiler, a FREE shareholder information service, reminds investors that they have until May 21, 2024 to file lead plaintiff applications in a securities class action lawsuit against Shoals Technologies Group, Inc. (NasdaqGM: SHLS), if they purchased or otherwise acquired the Company’s shares between May 17, 2022 and November 7, 2023, inclusive (the “Class Period”). This action is pending in the United States District Court for the Middle District of Tennessee.
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Shoals investors should visit us at https://claimsfiler.com/cases/nasdaq-shls/ or call toll-free (844) 367-9658. Lawyers at Kahn Swick & Foti, LLC are available to discuss your legal options.
About the Lawsuit
Shoals and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On November 7, 2023, the Company filed its 3Q2023 Quarterly Report disclosing that a defect with its wiring harnesses involving excessive pull back of wire insulation, or “shrinkback,” was far more severe than previously disclosed. Specifically, the Company reported that the shrinkback issue affected 30% of its harnesses installed between 2020 and 2022, booked a $50.2 million warranty expense for the quarter related to the shrinkback issue, and provided a range of potential loss related to the shrinkback issue of $59.7 million to $184.9 million.
On this news, the price of Shoals’ shares fell $3.28 per share, or more than 20%, over the next two trading days, from a closing price of $16.23 per share on November 7, 2023 to a closing price of $12.95 per share on November 9, 2023, wiping out approximately $550 million in market capitalization.
The case is Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefits Fund v. Shoals Technologies Group, Inc. et al., 24-cv-00334.
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