NEW YORK, NY - 
(NewMediaWire) - May 13, 2024 - Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) reminds investors that a complaint has been filed on behalf of purchasers of Shoals Technologies Group, Inc. (“Shoals” or the “Company”) common stock (NASDAQ: SHLS) between May 17, 2022 and November 7, 2023 (the “Class Period”). Click Here to Join Investigation.
If you are a member of the proposed Class, you may move the court no later than May 21, 2024 to serve as a lead plaintiff for the purported class. If you have losses, we encourage you to contact us to learn more about the lead plaintiff process.
According to the complaint, during the Class Period and undisclosed to investors, Shoals was aware that a significant portion of its wire harnesses had defects.
Further, according to the complaint, on November 7, 2023, Shoals filed its Quarterly Report on Form 10-Q for the third quarter of 2023 with the United States Securities and Exchange Commission and held an accompanying earnings call in which it revealed that an issue involving excessive pull back of wire insulation, or “shrinkback,” 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.
Following this news, the price of Shoals common stock fell $3.28 per share over the next two trading days, or 20.2%, to close at $12.95 per share on November 9, 2023.
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