NEW YORK, NY / ACCESSWIRE / July 3, 2021 / Pomerantz LLP announces that a class action lawsuit has been filed against Array Technologies, Inc. f/k/a ATI Intermediate Holdings, LLC ("Array" or the "Company") (NASDAQ:ARRY) and certain of its officers and directors. The class action, filed in the United States District Court for the Southern District of New York, and docketed under 21-cv-05658, is on behalf of:
(a) all persons and entities other than Defendants that purchased or otherwise acquired Array securities between October 14, 2020 and May 11, 2021, inclusive (the "Class Period"), against Array and the Company's Chief Executive Officer and Chief Financial Officer, for violations of the Securities Exchange Act of 1934 (the "Exchange Act") and SEC Rule 10b-5 promulgated thereunder; and
(b) all persons and entities that purchased or otherwise acquired Array common stock pursuant, or traceable, or both, to: (i) the registration statement and prospectus (the "IPO Materials") issued in connection with the Company's October 2020 initial public offering (the "IPO"); or (ii) the registration statement and prospectus (the "December 2020 SPO Materials") issued in connection with the Company's December 2020 offering (the "December 2020 SPO"); or (iii) the registration statement and prospectus (the "March 2021 SPO Materials") issued in connection with the Company's March 2021 offering (the "March 2021 SPO"); or (iv) any combination of the IPO, December 2020 SPO, or March 2021 SPO (collectively, the "Offerings") against, among others, certain of the Company's officers and directors, for violations of Sections 11 and 15 of the Securities Act of 1933 (the "Securities Act").
If you are a shareholder who purchased Array securities during the Class Period and/or pursuant or traceable to the Offerings, you have until July 13, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Array describes itself as one of the world's largest manufacturers of ground-mounting systems used in solar energy projects. According to its U.S. Securities and Exchange Commission filings, Array's principal product is an integrated system of steel supports, electric motors, gearboxes, and electronic controllers commonly referred to as a single-axis "tracker." Trackers move solar panels throughout the day to maintain an optimal orientation to the sun, which significantly increases their energy production.
The complaint alleges that, in the Offerings, Defendants made no mention of issues revolving around, inter alia, material negative impacts of rising steel and freight costs on its operations. Furthermore, subsequent to the Offerings and during the Class Period, Defendants repeatedly and consistently painted a materially misleading picture of the Company's business and prospects that did not reflect these rising costs. After the Offerings, and subsequent to the Class Period, Array disclosed that it was experiencing increases in steel prices and substantial increases in the cost of both ocean and truck freight that in turn were having a material impact on its margins for the foreseeable future. This caused Array to miss profit expectations and withdraw its full-year outlook.
Specifically, on May 11, 2021, after the close of trading, Array shocked the market by reporting, inter alia, lower revenues year-over-year and lower margins as a result of increased steel and shipping costs in a press release and a Form 8-K filed with the SEC. During a conference call with investors after the close of trading on May 11, 2021, after Defendants were asked by an analyst for the "decision-making process for not hedging steel," the Company's Chief Financial Officer responded that "in the past, that has not been our strategy. We had been . . . let[ting our suppliers] take that risk on."
In reaction to these disclosures, analysts cut their ratings on the Company's stock citing concern about its shrinking profit margins. For example, Barclays downgraded Array stock from "Overweight" to "Underweight" noting concerns about volumes, margins, and earnings power. Piper Sandler downgraded its rating to "Neutral" from "Overweight" and similarly cited concerns regarding lack of visibility on revenues and margins.
On this news, the Company's stock dropped $11.49 per share on May 12, 2021 to close at $13.46 per share on unusually high trading volume. By the commencement of the action, Array common stock was trading at a significant decline from its value at the time of the Offerings.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
SOURCE: Pomerantz LLP