SAN DIEGO, May 09, 2024 (GLOBE NEWSWIRE) — Robbins LLP informs investors that a second shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Shoals Technologies Group, Inc. (NASDAQ: SHLS) common stock (1) pursuant to the Company’s December 2022 second public offering, or (2) between May 17, 2022 and November 7, 2023. Shoals purports to be a leading provider of electrical balance of system (“EBOS”) products for solar power generation, battery storage, and electric vehicle charging infrastructure.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating the Allegations that Shoals Technologies Group, Inc. (SHLS) Delivered Defective Products
According to the complaint, during the class period, defendants failed to disclose that ally, Defendants failed to disclose to investors that: (1) Shoals did not deliver 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.
Plaintiff alleges that in Shoals’ Quarterly Report on Form 10-Q for the first quarter of 2023, filed with the SEC on May 8, 2023, investors were first informed of a potential issue involving “a subset of wire harnesses used in [Shoals’] EBOS solutions [] presenting excessive pull back of wire insulation at connection points,” which Shoals dubbed “shrinkback.” Shoals sought to ease investors’ concerns by reporting that it had “substantially ceased use of the related wire.”
Notwithstanding, on November 7, 2023, Shoals revealed that the Company had been forced to take an additional $50.2 million charge for warranty expense as result of the wire shrinkback issue. Shoals further advised that it expected the wire shrinkback issue to cost between $59.7 million and $184.9 million dollars to remedy. On this news, Shoals’ stock price fell more than 20%, 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.
What Now: You may be eligible to participate in the class action against Shoals Technologies Group Inc.. Shareholders who want to serve as lead plaintiff for the class must submit their papers with the court by May 21, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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