SHLS - SHOALS ALERT: Bragar Eagel & Squire P.C. Announces that a Class Action Lawsuit Has Been Filed Against Shoals Technologies Group Inc. and Encourages Investors to Contact the Firm | Benzinga
NEW YORK, March 24, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Shoals Technologies Group, Inc. ("Shoals" or the "Company") (NASDAQ:SHLS) in the United States District Court for the Middle District of Tennessee on behalf of all persons and entities who purchased or otherwise acquired Shoals common stock between May 17, 2022 and November 7, 2023, both dates inclusive (the "Class Period"). Investors have until May 21, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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According to the filed complaint, throughout the Class Period, Defendants touted the Company's "focus on quality and reliability" with regard to its EBOS components, from which Shoals generated the majority of its revenue during the Class Period. These components were backed by a product warranty Shoals provided to its customers. Shoals highlighted that its products "meet [the Company's] stringent quality requirements." As the Company's warranty supported the products meeting "stringent quality requirements," Shoals assured investors throughout the Class Period that its reported "Cost of Revenue" included costs related to product warranty liability.
In Shoals' Quarterly Report on Form 10-Q for the first quarter of 2023, filed with the SEC on May 8, 2023 (the "1Q23 10-Q"), investors were first informed of a potential issue involving "a subset of wire harnesses used in [Shoals'] EBOS solutions [] presenting excessive pull back of wire insulation at connection points," which Shoals dubbed "shrinkback." Shoals also sought to ease investors' concerns ...