According to the lawsuit, throughout the Class Period and in the Secondary Public Offering (“SPO”) Materials, defendants misled investors about Shoals’ electrical balance of system (“EBOS”) products, related “shrinkback” issues, and cost of revenue by failing to disclose that:
- Shoals did not deliver EBOS products that met the highest levels of quality and reliability;
- 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;
- Shoals would have to incur between $60 million to $185 million in costs to remediate the wire shrinkback issue;
- Shoals had understated its cost of revenue by millions of dollars; and
- as a result, defendants’ positive statements about Shoals’ financial guidance, business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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