PR Newswire
NEW YORK, Aug. 31, 2024
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In XPEL To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $100,000 investing in XPEL stock or options between November 8, 2023 and May 2, 2024and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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NEW YORK, Aug. 31, 2024 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against XPEL, Inc. ("XPEL" or the "Company") (NASDAQ: XPEL) and reminds investors of the October 7, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) XPEL's competitors were siphoning an increasingly large segment of the market; (ii) as a result, the Company's revenue growth became increasingly dependent upon existing customers and partners; (iii) as a result, the Company's revenue growth for 2023 and 2024 dwindled; and (iv) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On October 19, 2023, Culper Research issued a report alleging that XPEL "grossly understated its reliance on Tesla." In the prior week, Tesla stated that it would be eliminating XPEL from its supply chain. In response, XPEL stated that Tesla represented only 5% of its revenues. However, Culper Research estimated that Tesla actually represents 25% to 35% of XPEL's paint protection films ("PPF") business. Culper Research further alleged that XPEL "is concealing a massive undisclosed risk from its primary supplier which threatens to upend the [XPEL]'s entire reason for being." Specifically, Culper Research claimed that XPEL's long-time supplier, entrotech, inc., formed a joint venture with PPG, which has integrated protection technology directly into OEM paint. Culper Research noted that while "XPEL has historically disclosed it substantial reliance on entrotech in its filings," it had "conspicuously removed all mentions of entrotech in its most recent Form10-K and 10-Qs."
On this news, XPEL's stock price fell $10.57 per share, or more than 17%, to close at $50.65 per share on October 19, 2023.
Then, on May 2, 2024, XPEL issued a press release announcing its financial results for the first quarter of 2024. Among other items, XPEL reported GAAP earnings per share of $0.24, missing consensus estimates by $0.06, and revenue of $90.1 million, missing consensus estimates by $3.99 million. With respect to its full-year 2024 outlook, the Company advised that "[a]nnual revenue growth projection is revised downward to 8-10% from 15%."
On this news, XPEL's stock price fell $20.93 per share, or 38.91%, to close at $32.86 per share on May 2, 2024.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding XPEL's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the XPEL class action, go to www.faruqilaw.com/XPEL or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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