Securities class action litigation has been filed on behalf of investors who purchased or otherwise acquired Class A common stock of Shoals Technologies Group, Inc. (“Shoals” or the “Company”) (NASDAQ: SHLS) (i) between January 27, 2021 and May 7, 2024, inclusive (the “Class Period”), and/or (ii) in or traceable to Shoals’ December 2022 secondary public offering (the “SPO”).

If you purchased Shoals Class A common stock during the Class Period and/or in or traceable to the SPO, you may move the Court for appointment as lead plaintiff by no later than May 21, 2024.

A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.

Shoals investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should complete the form below, text or email investorinfo@lchb.com, or call Lieff Cabraser partner Sharon M. Lee at 1-800-541-7358.

Shoals provides electrical balance of system (“EBOS”) products for solar power generation, storage, and utilization.

The action alleges that during the Class Period and in the SPO prospectus and registration statement, Shoals failed to disclose materially adverse facts regarding the Company’s operations, including that: (i) it was aware of exposed copper conduit, or “shrinkback,” in EBOS wire harnesses in its solar fields and of the resulting defects; and (ii) it would have to incur heavy costs to remediate the issue.

On August 1, 2023, the Company filed a Form 10-Q for the second quarter of 2023 and held an earnings conference call during which Defendants revealed that Shoals was taking a $9.4 million charge for warranty expense because of the shrinkback issue. On this news, the Company’s Class A common stock price fell $1.60 per share, or 6.13%, from $26.11 per share on August 1, 2023, to close at $24.51 per share on August 2, 2023.

On November 7, 2023, the Company filed a Form 10-Q for the third quarter of 2023 and held an earnings conference call during which Defendants revealed shrinkback was affecting 30% of wire harnesses installed between 2020 and 2022. The Company also reported that it was taking a $50.2 million charge for warranty expense because of the shrinkback issue. On this news, the Company’s Class A common stock price fell $1.63 per share, or 10.04%, from $16.23 per share on November 7, 2023, to close at $14.60 per share on November 8, 2023.

Notably, on October 31, 2023, Shoals sued one its suppliers, Prysmian, and its complaint detailed Shoals’ knowledge, dating back to March 2022, that Prysmian wire had unacceptable amounts of insulation shrinkback.

On February 28, 2024, the Company filed a Form 10-Q for the fourth quarter of 2023 and held an earnings conference call during which Defendants revealed that growth in Shoals’ backlog and awarded orders had materially deteriorated. Shoals also issued disappointing financial guidance for first fiscal quarter and full year 2024. On this news, the Company’s Class A common stock price fell $2.56 per share, or 16.63%, from $15.39 per share on February 28, 2024, to close at $12.83 per share on February 29, 2024.

On May 7, 2024, the Company filed a Form 10-Q for the first quarter of 2024 and held an earnings conference call during which Defendants revealed that the business deterioration resulting from the shrinkback issue was even more severe than previously disclosed. On this news, the Company’s Class A common stock price fell $1.29 per share, or 14.66%, from $8.80 per share on May 7, 2024, to close at $7.51 per share on May 8, 2024.

As of May 8, 2024, the Company’s Class A common stock price has declined $14.74 per share, or 66.25%, from the SPO price of $22.25 per share.

About Lieff Cabraser

Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $129 billion in verdicts and settlements. Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” In 2021, The American Lawyer named our firm its “Boutique Litigation Firm of the Year.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America,” and listed us as its “2020 California Plaintiff Firm of the Year.” Lieff Cabraser is committed to ensuring access to justice for all.

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