SHLS - SHOALS ALERT: Bragar Eagel & Squire P.C. is Investigating Shoals Technologies Group Inc. on Behalf of Long-Term Stockholders and Encourages Investors to Contact the Firm | Benzinga
NEW YORK, May 28, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Shoals Technologies Group, Inc. (NASDAQ:SHLS) on behalf of long-term stockholders following a class action complaint that was filed against Shoals on March 22, 2024 with a Class Period encompassing (a) All persons and entities that purchased Shoals common stock pursuant, or traceable, or both, to the SPO Materials issued in connection with Shoals' December 2022 secondary public offering (the "SPO"); and (b) All persons and entities that purchased Shoals common stock between January 27, 2021 and May 7, 2024. Our investigation concerns whether the board of directors of Shoals have breached their fiduciary duties to the company.
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 ...