NEW YORK, June 7, 2024 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of XPEL, Inc. ("XPEL" or the "Company") (NASDAQ: XPEL). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.
The investigation concerns whether XPEL and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On October 19, 2023, Culper Research issued a report alleging that XPEL "grossly understated its reliance on Tesla." In the prior week, Tesla stated that it would be eliminating XPEL from its supply chain. In response, XPEL stated that Tesla represented only 5% of its revenues. However, Culper Research estimated that Tesla actually represents 25% to 35% of XPEL's paint protection films ("PPF") business. Culper Research further alleged that XPEL "is concealing a massive undisclosed risk from its primary supplier which threatens to upend the [XPEL]'s entire reason for being." Specifically, Culper Research claimed that XPEL's long-time supplier, entrotech, inc., formed a joint venture with PPG, which has integrated protection technology directly into OEM paint. Culper Research noted that while "XPEL has historically disclosed it substantial reliance on entrotech in its filings," it had "conspicuously removed all mentions of entrotech in its most recent Form10-K and 10-Qs."
On this news, XPEL's stock price fell $10.57 per share, or more than 17%, to close at $50.65 per share on October 19, 2023.
Then, on May 2, 2024, XPEL issued a press release announcing its financial results for the first quarter of 2024. Among other items, XPEL reported GAAP earnings per share of $0.24, missing consensus estimates by $0.06, and revenue of $90.1 million, missing consensus estimates by $3.99 million. With respect to its full-year 2024 outlook, the Company advised that "[a]nnual revenue growth projection is revised downward to 8-10% from 15%."
On this news, XPEL's stock price fell $20.93 per share, or 38.91%, to close at $32.86 per share on May 2, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
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SOURCE Pomerantz LLP
