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SHLS.US
id: 1205
Shoals Technologies Group, Inc. (SHLS) Substandard Products Case
The defendant has requested the court to dismiss the case.
M.D. Tennessee
Court3:24-cv-00334
Case number05/17/2022
Class period Start11/07/2023
Class period End05/21/2024
Lead Plaintiff motion deadline- $SHLS stockholder filed a claim vs Shoals Technologies Group, Inc. for delivering substandard product.
- Shoals Q3’23 10-Q SEC report revealed severe quality issue.
- Shoals investors can join this case to be notified about potential recovery.
On November 7, 2023, Shoals filed its Q3’23 10-Q report with the SEC and held an accompanying earnings call revealing severe issue involving excessive pull back of wire insulation (shrinkback) that affected 30% of Shoals' harnesses installed between 2020 and 2022.
The Company booked a $50.2 million warranty expense for the quarter related to the shrinkback issue, and provided a range of potential loss related to shrinkback of $59.7 million to $184.9 million.
On this news, $SHLS fell 20.2% over the next two trading days, losing $558M+ of shareholder value.
One of the investors has already filed a class action against Shoals for supplying substandard products in M.D. of Tennessee court.
Case Status
Motion to dismiss
Alleged Offence
Misleading Statements,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
11/09/2023
Filing date
03/21/2024
Lead Plaintiff Deadline
05/21/2024
Judge
Hon. Aleta A. Trauger