Lawsuit filed for Investors who lost money with shares of Shoals Technologies Group, Inc. (NASDAQ: SHLS)

An investor, who purchased shares of Shoals Technologies Group, Inc. (NASDAQ: SHLS), filed a lawsuit over alleged violations of Federal Securities Laws by Shoals Technologies Group, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Shoals Technologies Group, Inc. (NASDAQ: SHLS) have certain options and for certain investors are short and strict deadlines running. Deadline: May 21, 2024. NASDAQ: SHLS investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Portland, TN based Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions and components for solar, battery energy, and electric vehicle (EV) charging applications in the United States and internationally. Shoals Technologies Group, Inc. stated that its a leading provider of electrical balance of systems ("EBOS") products used in generating solar power, among other uses.

The plaintiffs claims that Shoals Technologies Group, Inc. purports to be a leading provider of electrical balance of systems ("EBOS") products used in generating solar power, among other uses, that the Defendants touted the Company's "focus on quality and reliability" with regard to its EBOS components, backed up by a warranty Shoals provided customers for its products, that Shoals Technologies Group, Inc. further highlighted that its products met "stringent quality requirements" and assured investors May 17, 2022 and November 7, 2023 that its reported "Cost of Revenue" included costs related to product warranty liability, and that in reality, by no later than March 2022, Shoals Technologies Group, Inc. learned of customers experiencing excessive pull back of wire insulation, or "shrinkback," in wire harnesses used in the EBOS products.
Then on November 7, 2023. Shoals Technologies Group, Inc. filed its Quarterly Report on Form 10-Q for the third quarter of 2023 with the SEC and held an accompanying earnings call in which Shoals Technologies Group, Inc. revealed that the wire shrinkback issue was far more severe than previously disclosed. Specifically, the Company reported that the shrinkback issue affected 30% of Shoals' harnesses installed between 2020 and 2022, booked a $50.2 million warranty expense for the quarter related to the shrinkback issue, and provided a range of potential loss related to the shrinkback issue of $59.7 million to $184.9 million.
Shares of Shoals Technologies Group, Inc. (NASDAQ: SHLS) declined from $28.34 per share on July 18, 2023, to as low as

The plaintiff claims that between May 17, 2022 and November 7, 2023, the Defendants failed to disclose that Shoals did not deliver EBOS products that met the highest levels of quality and reliability, that Shoals Technologies Group, Inc. 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, that Shoals Technologies Group, Inc. would have to incur between $60 million to $185 million in costs to remediate the wire shrinkback issue, that Shoals had understated its cost of revenue by millions of dollars, and that as a result, Defendants' positive statements about the Company's financial guidance, business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Those who purchased shares of Shoals Technologies Group, Inc. (NASDAQ: SHLS) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.