DMC Sued Over $142 Million Charge, Biggest Selloff in 4 Years

DMC Global Inc. didn’t disclose fiscal inadequacies in its main business unit and the reason it replaced a key executive before taking a $142 million goodwill impairment charge that helped spark its biggest stock drop in four years, a proposed class action says.

The oilfield services company misrepresented the value of its 2021 acquisition of a controlling interest in architectural building products maker Arcadia Products, says investor Samuel Garson in the lawsuit filed in the US District Court for the District of Colorado on Friday.

The company said in January that Arcadia accounted for all of the goodwill on DMC’s ...