SAN DIEGO, CA and ALBUQUERQUE, NM / ACCESSWIRE / August 9, 2021 / Shareholder rights law firm Robbins LLP is investigating Array Technologies, Inc. (NASDAQ:ARRY) to determine whether certain Array officers and directors violated the Securities Act of 1933 and Securities Exchange Act of 1934, and breached their fiduciary duties to the Company. 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 a complaint filed against the Company, 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.
Array Technologies, Inc. (ARRY) shareholders have legal options. If you would like more information regarding your rights, please contact Lauren Levi at (800) 350-6003 or [email protected], or via our Shareholder Information Form.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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Contact:
Lauren Levi
Robbins LLP
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[email protected]
(800) 350-6003
www.robbinsllp.com
SOURCE: Robbins LLP