SAN DIEGO & ALBUQUERQUE, N.M.--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a class action has been filed on behalf of all persons or entities who purchased or otherwise acquired Array Technologies, Inc. (NASDAQ: ARRY): (i) pursuant to one of the Company's public offerings (which occurred in October 2020, December 2020, and March 2021); or (ii) between October 14, 2020 and May 11, 2021. The complaint asserts claims under the Securities Act of 1933 and Securities Exchange Act of 1934. Array purports to be one of the world's largest manufacturers of ground-mounting systems used in solar energy projects.
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Array Technologies, Inc. (ARRY) Failed to Disclose Rising Costs Would Have an Adverse Effect on its Business Operations
According to the complaint, Array's Offering Materials stated that one of the Company's strengths related to its management of costs. Specifically, the Offering Materials noted the Company's "[d]emonstrated ability to reduce the cost of our products while increasing profit margins" and that its "[r]igorous supply chain management [was] supported by a sophisticated enterprise resource planning ("ERP") system." With regard to strategy, the IPO Materials explained how the Company leveraged its global supply chain and economies of scale to reduce product cost. However, the Company failed to disclose the then-existing rise of costs related to certain supplies such as steel, as well as the Company's freight costs.
On May 11, 2021, Array reported lower revenues year-over-year and lower margins. These dismal financial results included a 44% decrease in revenue for the prior year period, a 63% decrease in gross profit, a 69% decrease in adjusted EBITDA, and 71% decrease in adjusted income. The Company blamed increased steel and shipping costs, and noted, "continuing increases in prices of steel and freight costs will impact our margins in the second quarter and potentially subsequent quarters if prices do not normalize." On this news, Array's stock price dropped $11.49 per share on May 12, 2021, to close at $13.46 per share.
If you purchased shares of Array Technologies, Inc. (ARRY) pursuant to one of its public offerings or between October 14, 2020 and May 11, 2021, you have until July 13, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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