SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims on Behalf of Investors of XPEL, Inc.

NEW YORK, May 30, 2024 /PRNewswire/ — Pomerantz LLP is investigating claims on behalf of investors in XPEL, Inc. (“XPEL” or the “Company”) (NASDAQ: XPEL). Such investors are advised to contact Danielle Peyton at (email protected) or 646-581-9980, extension 7980.

The investigation concerns whether XPEL and certain of its officers and/or directors engaged in securities transactions. Fraud or other unlawful business practices.

(Click here for information on joining the class action lawsuit.)

At October 19, 2023Culper Research published a report claiming that XPEL had “seriously underestimated its dependence on Tesla.” The week before, Tesla had announced that it was cutting XPEL from its supply chain. In response, XPEL stated that Tesla only accounts for 5% of its revenue. However, Culper Research estimated that Tesla actually accounts for 25% to 35% of XPEL’s paint protection film (“PPF”) business. Culper Research further stated, allegedly that XPEL is “hiding a massive, undisclosed risk from its primary supplier that threatens to undermine (XPEL’s) entire raison d’être.” Specifically, Culper Research alleged that XPEL’s long-time supplier, entrotech, inc., formed a joint venture with PPG that incorporated protective technology directly into OEM paints. Culper Research noted that “while XPEL has disclosed its significant reliance on entrotech in its filings in the past,” it “conspicuously removed all mention of entrotech in its most recent Form10-K and 10-Q.”

Following this news, XPEL’s share price fell $10.57 per share, or more than 17%, and closed at $50.65 per share on 19 October2023.

Then on May 2, 2024XPEL released a press release announcing its financial results for the first quarter of 2024. Among other things, XPEL reported GAAP earnings per share of $0.24missing consensus estimates about 0.06 USDand revenue from 90.1 million US dollarsmissing consensus estimates about $3.99 million. Regarding its full-year 2024 outlook, the company said that “the annual revenue growth forecast is revised downward from 15% to 8-10%.”

Following this news, XPEL’s share price fell 20,93 € per share or 38.91% and closed at $32.86 per share on May 2, 2024.

Pomerantz LLP, with offices in new York, Chicago, Los Angeles, London, ParisAnd Tel-Avivis considered one of the leading law firms in the areas of corporate, securities and antitrust litigation. Founded by the late Abraham L. PomerantzKnown as the dean of class action lawyers, Pomerantz was a pioneer in the field of securities class action litigation. Today, more than 85 years later, Pomerantz continues the tradition he established and fights for the rights of victims of securities class action litigation. FraudBreach of fiduciary duty and corporate misconduct. The firm has won numerous millions of dollars in damages on behalf of class action plaintiffs. See www.pomlaw.com.

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CONTACT:
Danielle Peyton
Pomerantz LLP
(email protected)
646-581-9980 extension 7980

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