SAN FRANCISCO, CA / ACCESSWIRE / May 20, 2024 / National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP encourages investors in Shoals Technologies Group, Inc. ("Shoals" or the "Company") (NASDAQ:SHLS) who suffered losses from purchasing or otherwise acquiring Shoals Class A common stock (i) between January 27, 2021 and May 7, 2024, inclusive (the "Class Period"), and/or (ii) in or traceable to Shoals' December 2022 secondary public offering (the "SPO"), to contact us immediately regarding a pending securities class action against Shoals. The deadline to apply to be lead plaintiff is May 21, 2024.
Class Period: January 27, 2021 - May 7, 2024
Lead Plaintiff Motion Deadline: May 21, 2024
Case information:lieffcabraser.com/securities/shoals
Contact us: Email or text investorinfo@lchb.com or call 1-800-541-7358
Shoals provides electrical balance of system ("EBOS") products for solar power generation, storage, and utilization.
The action alleges that during the Class Period and in the SPO prospectus and registration statement, Shoals failed to disclose materially adverse facts regarding the Company's operations, including that: (i) it was aware of exposed copper conduit, or "shrinkback," in EBOS wire harnesses in its solar fields and of the resulting defects; and (ii) it would have to incur heavy costs to remediate the issue.
On August 1, 2023, the Company filed a Form 10-Q for the second quarter of 2023 and held an earnings conference call during which Defendants revealed that Shoals was taking a $9.4 million charge for warranty expense because of the shrinkback issue. On this news, the Company's Class A common stock price fell $1.60 per share, or 6.13%, from $26.11 per share on August 1, 2023, to close at $24.51 per share on August 2, 2023.
On November 7, 2023, the Company filed a Form 10-Q for the third quarter of 2023 and held an earnings conference call during which Defendants revealed shrinkback was affecting 30% of wire harnesses installed between 2020 and 2022. The Company also reported that it was taking a $50.2 million charge for warranty expense because of the shrinkback issue. On this news, the Company's Class A common stock price fell $1.63 per share, or 10.04%, from $16.23 per share on November 7, 2023, to close at $14.60 per share on November 8, 2023.
Notably, on October 31, 2023, Shoals sued one its suppliers, Prysmian, and its complaint detailed Shoals' knowledge, dating back to March 2022, that Prysmian wire had unacceptable amounts of insulation shrinkback.
On February 28, 2024, the Company filed a Form 10-Q for the fourth quarter of 2023 and held an earnings conference call during which Defendants revealed that growth in Shoals' backlog and awarded orders had materially deteriorated. Shoals also issued disappointing financial guidance for first fiscal quarter and full year 2024. On this news, the Company's Class A common stock price fell $2.56 per share, or 16.63%, from $15.39 per share on February 28, 2024, to close at $12.83 per share on February 29, 2024.
On May 7, 2024, the Company filed a Form 10-Q for the first quarter of 2024 and held an earnings conference call during which Defendants revealed that the business deterioration resulting from the shrinkback issue was even more severe than previously disclosed. On this news, the Company's Class A common stock price fell $1.29 per share, or 14.66%, from $8.80 per share on May 7, 2024, to close at $7.51 per share on May 8, 2024.
As of May 8, 2024, the Company's Class A common stock price has declined $14.74 per share, or 66.25%, from the SPO price of $22.25 per share.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with over 125 attorneys in offices in San Francisco, New York, Nashville, and Munich, Germany, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Repeatedly recognized as a "Plaintiffs' Powerhouse" by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $129 billion in verdicts and settlements. For over 50 years, Lieff Cabraser has remained committed to ensuring access to justice for all.
Source/Contact
Sharon Lee
Lieff Cabraser Heimann & Bernstein, LLP
415 956-1000
slee@lchb.com
SOURCE: Lieff Cabraser Heimann & Bernstein, LLP
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