A securities class action has been filed in the USDC – TN. against of Shoals Technologies Group, Inc. (SHLS) (“Shoals” or the “Company”) on behalf of all persons and entities who purchased or otherwise acquired Shoals common stock between May 17, 2022 and November 7, 2023 both dates inclusive (the “Class Period”).
Shoals purports to be a leading provider of electrical balance of system (“EBOS”) products for solar power generation, battery storage, and electric vehicle charging infrastructure. In the context of solar power generation, Shoals EBOS products encompass all of the components necessary to transport electric currents produced by solar panels to an inverter, allowing the current to be delivered to a power grid or an energy storage product.
The complaint alleges, during the Class Period, Defendants made materially false and misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and prospects in violation of the Exchange Act and SEC Rule 10b-5. Specifically, Defendants failed to disclose that:
(1) Shoals did not deliver EBOS products that met the highest levels of quality and reliability;
(2) Shoals 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;
(3) Shoals would have to incur between $60 million to $185 million in costs to remediate the wire shrinkback issue; and
(4) Shoals had understated its cost of revenue by millions of dollars. 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, thereby harming investors.
If you purchased Shoals common stock during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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