Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Middle District of Tennessee on behalf of shareholders of Shoals Technologies Group, Inc. who purchased shares between May 17, 2022 and November 7, 2023.
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.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until May 21, 2024 to request that the court appoint them lead plaintiff.