Deadline Soon: DMC Global Inc. (BOOM) Investors Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz About Securities Fraud Lawsuit

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming February 4, 2025 deadline to participate as a lead plaintiff in the securities fraud class action lawsuit filed on behalf of investors who acquired DMC Global Inc. (“DMC” or the “Company”) (NASDAQ: BOOM) securities between January 29, 2024 and November 4, 2024, inclusive (the “Class Period”).

IF YOU ARE AN INVESTOR WHO LOST MONEY ON DMC GLOBAL INC. (BOOM), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT.

What Happened?

On October 21, 2024, DMC disclosed that it was “revising its guidance” for the quarter ended September 30, 2024, stating that the Company’s adjusted EBITDA is now expected to be approximately $5 million, down from prior guidance for $15-18 million, and that the third quarter financial results “will include inventory and bad debt charges at DynaEnergetics totaling approximately $5 million, as well as lower fixed overhead absorption on reduced sales at both Arcadia and DynaEnergetics.” Further, the Company revealed that the financial results will include an approximate $142 million non-cash goodwill impairment charge “associated with DMC’s December 2021 acquisition of a controlling interest in Arcadia.”

On this news, DMC’s stock price fell $2.36, or 18.3%, to close at $10.57 per share on October 22, 2024, thereby injuring investors.

Then, on November 4, 2024, DMC released its third quarter 2024 financial results, reporting sales of $152.4 million, a $159.4 million net loss (inclusive of a $141.7 million goodwill impairment charge at Arcadia Products), and adjusted EBITDA of $5.7 million.

On this news, DMC’s stock price fell $0.59, or 6%, to close at $9.25 per share on November 5, 2024, thereby injuring investors further.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the goodwill associated with Arcadia Products was overstated due to the adverse events and circumstances affecting that reporting segment; (2) DMC’s materially inadequate internal systems and processes were adversely affecting its operations; (3) the Company’s inadequate systems and processes prevented it from ensuring reasonably accurate guidance and that its public disclosures were timely, accurate, and complete; (4) as a result, Defendants misrepresented DMC’s operations and financial results; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased or otherwise acquired DMC securities between January 29, 2024 and November 4, 2024, the deadline to seek appointment as the lead plaintiff in the securities fraud class action is February 4, 2025.

Contact Us To Participate or Learn More:

If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact us:

Frank R. Cruz
The Law Offices of Frank R. Cruz,
2121 Avenue of the Stars, Suite 800,
Century City, California 90067
Email us at: [e-mail]
Call us at: 310-914-5007
Visit our website at www.frankcruzlaw.com
Follow us for updates on Twitter: twitter.com/FRC_LAW

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.