NEW YORK, Jan. 12, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against XPEL, Inc. (“XPEL” or the “Company”) (NASDAQ: XPEL) on behalf of XPEL stockholders. Our investigation concerns whether XPEL has violated the federal securities laws and/or engaged in other unlawful business practices.
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XPEL sells, distributes, and installs after-market automotive products. The company offers automotive surface and paint protection, headlight protection, and automotive and architectural window films, as well as proprietary software.
On October 19, 2023, Culper Research issued a report alleging that XPEL "grossly understated its reliance on Tesla." In the prior week, Tesla stated that it would be eliminating XPEL from its supply chain. In response, XPEL stated that Tesla represented only 5% of its revenues. However, Culper Research estimated that Tesla actually represents 25% to 35% of XPEL's paint protection films ("PPF") business.
Further, Culper Research stated XPEL "is concealing a massive undisclosed risk from its primary supplier which threatens to upend the [XPEL]'s entire reason for being." Specifically, Culper Research claimed that XPEL's long-time supplier, entrotech, inc., formed a joint venture with PPG, which has integrated protection technology directly into OEM paint.
As support for its contentions, Culper Research reported that "XPEL has historically disclosed its substantial reliance on entrotech in its filings, yet conspicuously removed all mentions of entrotech in its most recent Form 10-K and 10-Qs."
Following this news, XPEL's share price fell by more than 17%, to close at $50.65, on October 19, 2023, on very heavy volume.
If you purchased or otherwise acquired XPEL shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
