Archived Investigations

Shoals Technologies Group, Inc. (NasdaqGM: SHLS)

Company Name:Shoals Technologies Group, Inc.
Stock Symbol:NasdaqGM: SHLS
Court:Middle District of Tennessee
Class Period Start:01/27/2021
Class Period End (inclusive):05/07/2024
Filing Deadline:The deadline has passed.
March 29, 2024

Shoals and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws. 

The alleged false and misleading statements and omissions include, but are not limited to, that: (i) between 2020 and the end of 2022, the Company had installed defective wires at approximately 300 sites impacting approximately 30% of all wire harnesses manufactured during this time period; (ii) as a result of the above, the Company was facing tens of millions of dollars in shrinkback warranty liabilities; (iii) the Company had not booked a sufficient warranty expense provision to cover the remediation costs for the shrinkback issue; (iv) the Company’s historical reported revenue, gross profit, and net income had been generated in substantial part through the sale of defective products posing a risk of injury, death, and fire damage to its customers; (v) the Company’s ability to competitively differentiate its products through representations regarding the reliability, safety, and quality of its offerings had become materially impaired; and (vi)  as a result of the above, the Company’s business and operations were acutely exposed to material, undisclosed risks of reputational harm and negative impacts to the Company’s business, financial results, and prospects.

The case is Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefits Fund v. Shoals Technologies Group, Inc. et al., 24-cv-00334. A subsequent case, Oklahoma Police Pension and Retirement System v. Shoals Technologies Group, Inc. et al., 24-cv-00580, expanded the class definition. Another subsequent case, Kissimmee Utility Authority Employees’ Retirement Plan v. Shoals Technologies Group, Inc. et al., 24-cv-00598, expanded the class period.

Click here to read the first filed complaint.

Click here to read the subsequent complaint.