Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of investors that purchased Array Technologies, Inc. (NASDAQ: ARRY) securities between October 14, 2020 and May 11, 2021, both dates inclusive (the “Class Period”); and/or Array common stock pursuant and/or traceable to the offering documents issued in connection with the Company’s initial public offering conducted October 2020 (the “IPO” or “Offering”), the Company’s secondary public offering conducted December 2020 (the “December SPO”), or the Company’s secondary public offering conducted March 2021 (the “March SPO”). Investors have until July 13, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action.
With respect to the Exchange Act claims, the Action alleges that, throughout the Class Period, defendants made false and misleading statements because they omitted and otherwise failed to disclose that, dating back to the first quarter of 2020, prices of certain commodities such as steel was in the process of more than doubling, and that Array was facing increasing freight costs. As a result of the foregoing, the Company's positive statements about its business and operations lacked a reasonable basis.
Similarly, with respect to the Securities Act claims, the Action alleges that the Offering Materials contained false and misleading statements because they omitted and otherwise failed to disclose that, prior to the Offerings, increases in commodity and freight costs had been negatively impacting the Company's business and operations.
On May 11, 2021, just months after the Offerings, the truth about these mounting costs and their negative impact on the Company's profits was revealed. On that date, Array reported first quarter 2021 results that missed profit analysts' expectations and withdrew its full-year 2021 outlook citing increases in steel and freight costs. Analysts immediately cut their ratings on Array stock citing concerns about the Company's shrinking profit margins. For example, in a Barclays report, analysts downgraded Array stock from "Overweight" to "Underweight" noting concerns about volumes, margins, and earnings power.
On this news, Array's stock priced dropped $11.49 per share, or 46.1%, to close at $13.46 per share on May 12, 2021.
The complaint alleges that, during the Class Period, defendants made materially false and misleading statements regarding the Company’s business. Specifically, defendants’ public offering materials failed to adequately disclose the then-existing rise of costs related to certain supplies such as steel, as well as the Company’s freight costs and that these were likely to have, and were having, an adverse effect on the Company’s business and operations. The complaint also alleges that defendants made materially false and/or misleading statements in press releases and conference calls because defendants omitted and otherwise failed to disclose that dating back to Q1 2020, prices of certain commodities such as steel were increasing dramatically, and that Array was facing increasing freight costs, and as a result of the foregoing, the Company’s positive statements about its business and operations lacked a reasonable basis.
If you purchased Array securities during the Class Period and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.