Case Summary

Shoals Tech.

NASDAQ: SHLS

Case Details

  • Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefits Fund v. Shoals Technologies Group, Inc. et al.
  • Class Period:May 17, 2022 - November 07, 2023
  • Date Filed:March 22, 2024
  • Jurisdiction:U.S. District Court, Middle District Court of Tennessee
  • Docket Number: 3:24-cv-00334
  • Lead Plaintiff Deadline: May 21, 2024
Days Left to
Seek Plaintiff
28

Overview

A class action lawsuit has been filed against Shoals Technologies Group, Inc. (“Shoals” or the “Company”) (NASDAQ: SHLS) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Shoals lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Shoals common stock between May 17, 2022 and November 7, 2023, both dates inclusive (the “Class Period”), and investors have until May 21, 2024 to seek appointment as lead plaintiff of the Shoals class action lawsuit.

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.  In the context of solar power generation, Shoals EBOS products encompass all of the components necessary to transport electric currents produced by solar panels to an inverter, allowing the current to be delivered to a power grid or an energy storage product.

The lawsuit alleges that 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.  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.

On November 7, 2023, Shoals announced 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.

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If you purchased or otherwise acquired Shoals common stock between May 17, 2022 and November 7, 2023, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Shoals lawsuit is May 21, 2024.

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