Faruqi & Faruqi, LLP investigates claims

NEW YORK, May 8, 2024 (GLOBE NEWSWIRE) — 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 to the May 21, 2024 deadline 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 suffered losses of more than $100,000 while investing in Shoals stocks or options between May 17, 2022 and November 7, 2023 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. See 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 between $60 million and $185 million in costs to correct the cable 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 problem was far more serious than previously disclosed. Specifically, the company reported that the shrinkback issue affected 30% of Shoals’ wiring harnesses installed between 2020 and 2022, recorded a $50.2 million warranty expense for the quarter related to the shrinkback issue, and a number of potential Losses related to the shrinkback issue reported $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.

Lawyer advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past 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.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5e848124-9c14-4bab-ba13-256ecec0c433