ATTENTION SHLS INVESTORS: Contact Berger Montague About a Shoals Technologies Group Class Action Lawsuit

Philadelphia, Pennsylvania--(Newsfile Corp. - April 29, 2024) - Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Shoals Technologies Group, Inc. ("Shoals" or the "Company") (NASDAQ: SHLS) on behalf of purchasers of Shoals' common stock between May 17, 2022 and November 7, 2023, inclusive (the "Class Period").

Investor Deadline: Investors who purchased or acquired Shoals securities during the Class Period may, no later than May 21, 2024, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at jmaro@bm.net or (267) 637-3176, or Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or CLICK HERE.

Shoals is a leading provider of electrical balance of system ("EBOS") products for solar power generation, battery storage, and electric vehicle charging infrastructure. In the context of solar power generation, Shoals EBOS products encompass all of the components necessary to transport electric currents produced by solar panels to an inverter, allowing the current to be delivered to a power grid or an energy storage product. Prior to, and during the Class Period, Shoals used polymer-insulated copper wires, which it purchased from a number of different suppliers, in its EBOS products. The wires served a critical role in Shoals EBOS products as part of custom wire harnesses that are used to aggregate electricity from multiple solar panels and deliver that electricity to inverters.

The truth emerged on November 7, 2023, when Shoals filed its Quarterly Report on a Form 10-Q for the third quarter of 2023 ("2Q23 10-Q") and held an accompanying earnings call in which Defendants revealed that a wire insulation issue - referred to as "shrinkback" - was far more severe than previously disclosed. Specifically, the Company reported that shrinkback affected 30% of Shoals' wire harnesses installed between 2020 and 2022. Consequently, Shoals booked a $50.2 million warranty expense for the second quarter of 2023 related to the shrinkback issue, and provided a related range of potential loss of $59.7 million and $184.9 million.

Following this news, the price of Shoals' stock dropped $3.28 per share, or more than 20%, to close at $12.95 per share on November 9, 2023.

According to the complaint and throughout the Class Period, the defendants failed to disclose to investors that: (1) Shoals did not deliver EBOS products that met the highest levels of quality and reliability; (2) Shoals had received reports of exposed copper conduit in EBOS wire harnesses in a large number of solar fields and was aware that a significant portion of its wire harnesses had defects; (3) Shoals would have to incur between $60 million to $185 million in costs to remediate the wire shrinkback issue; and (4) Shoals had understated its cost of revenue by millions of dollars.

Learn More About the Lawsuit

A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.

Contacts:
James Maro, Senior Counsel
Berger Montague
(267) 637-3176
jmaro@bm.net

Andrew Abramowitz, Senior Counsel
Berger Montague(215) 875-3015
aabramowitz@bm.net

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/207200