ONGOING DEADLINE ALERT: Faruqi & Faruqi, LLP is investigating claims on behalf of Shoals investors

NEW YORK, May 10, 2024 /PRNewswire/ — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating and recalls potential claims against Shoals Technologies Group, Inc. (“Shoals” or the “Company”) (NASDAQ: SHLS ). investors in it Deadline May 21, 2024 to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson encourages investors who have suffered losses of more than $100,000 to contact him directly to discuss their options

If you purchased or acquired Shoals securities between (a) all individuals and entities that purchased Shoals common stock pursuant to the SPO Materials (as defined herein) issued in connection with Shoals’ secondary public offering in December 2022 were or are traceable to them or both (the “SPO”); and/or (b) between May 17, 2022 and November 7, 2023 (including the “Class Period”) and would like to discuss your legal rights, call Faruqi & Faruqi Partners Josh Wilson directly at 877-247-4292 or 212-983-9330 (ext. 1310). For more information you can also click here: www.faruqilaw.com/SHLS.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its founding in 1995 www.faruqilaw.com.

As set forth below, the complaint alleges that the Company and its officers violated federal securities laws by making false and/or misleading statements and/or failing to disclose the following: (1) Shoals did not ship EBOS products , which met the highest quality requirements and reliability; (2) Shoals had received reports of exposed copper tubing in EBOS wiring harnesses in a large number of solar arrays and was aware that a significant portion of its wiring harnesses were defective; (3) Shoals would have to incur costs of $60 million to $185 million to correct the wire shrinkage problem. and (4) Shoals had underestimated its cost of sales by millions of dollars. As a result, Defendants’ positive statements about the Company’s financial outlook, business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

The truth was revealed after the market closed on November 7, 2023. On that day, Shoals filed its quarterly report on Form 10-Q for the third quarter of 2023 with the SEC and held an accompanying earnings conference call in which defendants disclosed that the wire shrinkage issue was far more serious than previously disclosed . Specifically, the company reported that the shrink-back issue affected 30% of Shoals’ wiring harnesses installed between 2020 and 2022, and recorded a warranty expense of $50.2 million for the quarter related to the shrink-back issue and a range of potential losses associated with the shrink-back reissue from $59.7 million to $184.9 million. In response to these revelations, Shoals’ stock price 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 a closing price of $12.95 per share on November 9, 2023, wiping out a market capitalization of approximately $550 million.

The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class, who is appropriate and typical of the class, and who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may request the Court to serve as lead plaintiff through counsel of their choice, or may elect to do nothing and remain an absent class member. Your ability to participate in any recovery will not be affected by the decision to serve as lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information about Shoals’ conduct to contact the company, including whistleblowers, former employees, shareholders and others.

To find out more about the shoals Class action lawsuit, go for it www.faruqilaw.com/SHLS or Call Faruqi & Faruqi Partners Josh Wilson directly at 877-247-4292 or 212-983-9330 (ext. 1310).

Lawyer advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar result with respect to future matters. We welcome the opportunity to discuss your individual case. All communications will be treated confidentially.

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