Shoals Investors Reach $70 Million Settlement in Wire Suit (2)

Shoals Technologies Group Inc. and architects of a 2022 public stock offering will cough up $70 million to resolve investor allegations they concealed a product defect and related warranty costs.

The settlement class would include those who acquired Shoal shares from May 16, 2022, through May 7, 2024, including in that offering, shareholders leading the case said while seeking preliminary approval of the agreement Tuesday.

If approved in the US District Court for the Middle District of Tennessee, the deal would end a lawsuit against the electrical parts maker, then-executives and board members, and bank underwriters of that offering—among them ...