NASDAQ: SHLS Lawsuit Alert: Investors in Shoals Technologies Group should contact the Shareholders Foundation

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A lawsuit was filed in the U.S. District Court for the Middle District of Tennessee by an investor who bought shares of Shoals Technologies Group, Inc. (NASDAQ: SHLS) alleging that the company had violated federal securities laws in relation to some allegedly false and misleading statements made between May 17, 2022 and November 7, 2023.

Investors who bought a sizable portion of Shoals Technologies Group, Inc. (NASDAQ: SHLS) shares between May 17, 2022 and November 7, 2023, as well as those who bought any shares of the company before May 2022 and are still holding any of those shares, are subject to certain options, some of which have strict deadlines. Let us know before May 21, 2024. NASDAQ: Investors in SHLS should get in touch with the Shareholders Foundation by phone at +1(858) 779-1554 or via email at [email protected].

Electrical balance of system (EBOS) solutions and components for solar, battery energy, and electric vehicle (EV) charging applications are offered by Portland, TN-based Shoals Technologies Group, Inc. both domestically and abroad. According to Shoals Technologies Group, Inc., it is a top supplier of electrical balance of systems (EBOS) products, which are among other things utilized in the production of solar electricity.

According to Shoals Technologies Group, Inc., its yearly Net Income decreased from $127.61 million in 2022 to $39.97 million in 2023, while its Total Revenue increased from $326.94 million in 2022 to $488.93 million in 2023.

The plaintiffs state that Shoals Technologies Group, Inc. represents itself as a leading supplier of electrical balance of systems (EBOS) products, which are used, among other things, to generate solar power. The defendants further state that Shoals Technologies Group, Inc.’s products meet strict quality requirements and reassure investors on May 17, 2022 and November 7, 2023 that its reported Cost of Revenue includes costs related to product warranty liability. In actuality, however, by no later than March 2022, Shoals Technologies Group, Inc. learned of customers experiencing excessive pull back of wire insulation, or shrinkbaNovember 7, 2023, after that. In an earnings call that followed the filing of its Quarterly Report on Form 10-Q with the SEC for the third quarter of 2023, Shoals Technologies Group, Inc. stated that the wire shrinkback problem was far more serious than originally reported. In particular, the company stated that 30% of Shoals harnesses installed between 2020 and 2022 were impacted by the shrinkback issue, recorded a $50.2 million warranty expense for the quarter due to the shrinkback issue, and offered a range of possible losses associated with the shrinkback issue, from $59.7 million to $184.9 million.On July 18, 2023, the share price of Shoals Technologies Group, Inc. (NASDAQ: SHLS) dropped from $28.34 to as low as

In the complaint, the plaintiff claims that the defendants broke federal securities laws when selling common shares of Shoals Technologies Group, Inc. (NASDAQ: SHLS) to buyers between May 17, 2022 and November 7, 2023. The plaintiff specifically alleges that between May 17, 2022 and November 7, 2023, the Defendants concealed information showing that Shoals failed to deliver EBOS products that met the highest standards of quality and reliability, that Shoals Technologies Group, Inc. was aware that a substantial portion of its wire harnesses had defects and had received reports of exposed copper conduit in EBOS wire harnesses in a number of solar fields, that Shoals had understated its cost of revenue by millions of dollars, and that as a result, Defendants’ positive statements about the Company’s financial guidance, business, operations, and prospects were materially false.

Shareholders Foundation should be contacted by those who bought shares of Shoals Technologies Group, Inc. (NASDAQ: SHLS), as they have specific choices.

Get in touch with Investors Foundation, Inc.Michael Daniels: +1-(858)-779-1554; 3111 Camino Del Rio North, Suite 42392108, San Diego(858)[email protected] is the fax number.

About The Shareholders Foundation, Inc.: We are a professional portfolio monitoring and settlement claim filing service that keeps investors informed about securities class actions, settlements, judgments, and other legal news pertaining to the stock and financial markets. We also conduct research on shareholder issues. With a vast network of contacts, Shareholders Foundation, Inc. provides support, guidance, and aid to each and every shareholder. It is not a law firm, The Shareholders Foundation, Inc. The Shareholders Foundation is not involved in the filed, reached, or settled cases, investigations, or settlements mentioned. The public is offered this information as a service. It should not be relied upon and is not meant to be legal advice.

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