SHOALS TECHNOLOGIES GROUP, INC. SAN DIEGO, March 26, 2024 /PRNewswire/ -- DiCello Levitt LLP announces that if you purchased or acquired Shoals Technologies Group, Inc. ("Shoals" or the "Company") (NASDAQ: SHLS) common stock between May 17, 2022 and November 7, 2023, inclusive (the "Class Period"), you have until May 21, 2024 to seek appointment as lead plaintiff of the Shoals class action lawsuit. The Shoals lawsuit charges the Company and certain of its former senior executive officers with violations of the Securities Exchange Act of 1934.
If you purchased shares of Shoals common stock between May 17, 2022 and November 7, 2023, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, you may submit your information here: https://dicellolevitt.com/securities/shoals/.
You can also contact DiCello Levitt partner Brian O'Mara by calling (888) 287-9005 or at investors@dicellolevitt.com.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Allegations
According to the Shoals lawsuit, (1) Shoals did not deliver electrical balance of systems ("EBOS") products that met the highest levels of quality and reliability; (2) Shoals had received reports of exposed copper conduit in EBOS wire harnesses in a large number of solar fields and was aware that a significant portion of its wire harnesses had defects; (3) Shoals would have to incur between $60 million to $185 million in costs to remediate the wire shrinkback issue; and (4) Shoals had understated its cost of revenue by millions of dollars. As a result, Defendants' positive statements about the Company's financial guidance, business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
After the close of markets on November 7, 2023, Defendants revealed that the wire shrinkback issue was far more severe than previously disclosed. Specifically, the Company reported that the shrinkback issue affected 30% of Shoals' harnesses installed between 2020 and 2022, booked a $50.2 million warranty expense for the quarter related to the shrinkback issue, and disclosed that the potential loss related to the shrinkback issue would be between $59.7 million to $184.9 million. As a result, the price of Shoals' stock dropped more than 20% over the next two trading days, falling 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, erasing approximately $550 million in market capitalization.
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SOURCE DiCello Levitt LLP
