DMC Leaders Sued Over Weak Sales, Goodwill Impairment Charge

DMC Global Inc. leaders made overly optimistic statements before the company reported disappointing results and took a $142 million goodwill impairment charge, an investor alleges.

The entire impairment charge was attributable to the decking and railing unit, Arcadia Products, which DMC acquired in 2021, Michael Lewis says on behalf of the company. He filed his derivative suit June 6 in the US District Court for the District of Colorado.

DMC’s stock suffered a series of shocks as the news emerged, including an 18% selloff on Oct. 22, 2024 after the impairment charge was disclosed, according to the complaint. That was ...