SHLS INVESTOR ALERT

Bronstein, Gewirtz & Grossman LLC Announces that Shoals Technologies Group, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit!

Attorney Advertising--Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Shoals Technologies Group, Inc. (“Shoals” or “the Company”) (NASDAQ: SHLS) and certain of its officers.

Class Definition:

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Shoals securities between May 17, 2022 and November 7, 2023, inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/SHLS.

Case Details:

According to the Complaint, Shoals, based in Portland, Tennessee, 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.

In Shoals’ Quarterly Report on Form 10-Q for the first quarter of 2023, filed with the SEC on May 8, 2023 (the “1Q23 10-Q”), investors were first informed of a potential issue involving “a subset of wire harnesses used in [Shoals’] EBOS solutions [] presenting excessive pull back of wire insulation at connection points,” which Shoals dubbed “shrinkback.” Shoals also sought to ease investors’ concerns by reporting that it had “substantially ceased use of the related wire.”

Then, on August 1, 2023, Shoals filed its Quarterly Report on Form 10-Q for the second quarter of 2023 (“2Q23 10-Q”) with the SEC and held a conference call with analysts to discuss its results for the quarter. The 2Q23 10-Q disclosed that Shoals had recorded a warranty liability of $9.3 million related to the shrinkback issue. During the corresponding call with analysts, Oppenheimer analyst Colin Rusch asked Defendants to “talk a little bit about the wire issues . . . how extensive it was in terms of the number of customers and number of shipments and how much time it was spread over?” In response, Chief Financial Officer (“CFO”) Dominic Bardos stated, “We’ve communicated pretty much everything we can.” CFO Bardos also confirmed that “[t]he charge that we booked in the quarter we believe is adequate to do the remediation required, and that’s why we booked it.”