Solar Power Parts Maker Allegedly Hid Extent of Wiring Problems

Shoals Technologies Group Inc. and its top executives hid issues with solar energy infrastructure parts the company manufactured for more than a year, touting quality and reliability until wire insulation problems and more than $50 million in related warranty expenses were disclosed to investors, a proposed shareholder class action says.

Two days after Shoals revealed that it expected the wire “shrinkback” issue on its solar components would cost between $59 million and $184 million to remedy, the company’s stock had fallen more than 20% to close at $12.95 on Nov. 9, 2023, according to the suit filed in US District ...