Shoals Technologies Group, Inc. (NASDAQ: SHLS)

This lawsuit is for anyone who acquired securities in Shoals Technologies Group, Inc. (NASDAQ: SHLS) from May 17, 2022 through November 7, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to timely disclose to investors that wiring harnesses that the Company manufactured for installation in solar power generation were defective thereby exposing copper wiring and causing the Company to have to replace the harnesses under warranty.

On August 1, 2023, Shoals disclosed that it had recorded a warranty liability of $9.3 million related to an issue involving “a subset of wire harnesses used in [Shoals’ electrical balance of system (“EBOS”)] solutions presenting excessive pull back of wire insulation at connection points,” which Shoals dubbed “shrinkback.” Then, on November 7, 2023, Shoals revealed that it had taken an additional $50.2 million charge for warranty expense as a result of the shrinkback issue. The Company further stated that it expected the shrinkback issue to cost between $59.7 million and $184.9 million dollars to remedy. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Shoals Technologies Group, Inc. (NASDAQ: SHLS) from May 17, 2022 through November 7, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.