Farooqui & Farooqui LLP Securities Litigation Partner James (Josh) Wilson encourages investors who have suffered losses exceeding $75,000 in DMC to contact him directly to discuss their options.
If you suffer losses exceeding $75,000 DMC Between May 3, 2024 and November 4, 2024 If you would like to discuss your legal rights, contact Farooqui & Farooqui Partner Josh Wilson live in 877-247-4292 or 212-983-9330 (ext. 1310).
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New York, New York–(Newsfile Corp. – December 22, 2024) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against DMC Global (NASDAQ:) Inc. (“DMC” or the “Company”) (NASDAQ: BOOM) and reminds investors of February 4, 2025 deadline For the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.
Farooqui & Farooqui is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executive officers violated the federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the goodwill associated with Acadia's products was overstated due to adverse events and circumstances; affecting the reporting sector; (2) DMC Global'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 Global's operations and financial results; and/or (5) as a result, the Company's public statements were false or misleading or lacked a reasonable basis when made.
On October 21, 2024, DMC announced a revision to its financial guidance for the quarter ending September 30, 2024. The company now expects adjusted EBITDA of approximately $5 million, significantly lower than the previously expected range of $15 to 18 USD. million. Additionally, DMC noted that its third-quarter financial results will include inventory-related and bad debt charges of approximately $5 million at DynaEnergetics, along with lower fixed overhead absorption due to lower sales at both Arcadia and DynaEnergetics. Furthermore, the company disclosed that its financial results will reflect approximately $142 million of non-cash goodwill impairment charges resulting from DMC's acquisition of a controlling interest in Arcadia in December 2021.
Following this disclosure, the market value of DMC stock saw a decline of $2.36 per share, or 18.3%, to close at $10.57 per share on October 22, 2024. This significant decline in stock price resulted in financial losses for investors.
Further developments occurred on November 4, 2024, when DMC released its financial results for the third quarter of the fiscal year ending September 30, 2024. Following this announcement, the value of DMC shares continued to decline, showing a decline of more than 10% during the middle of 2024. Trading Day On November 5, 2024.
A court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class and is appropriate and typical for members of the class who direct and oversee litigation on behalf of the putative class. Any member of the putative class may ask the court to serve as lead plaintiff through counsel of their choice, or they may choose to do nothing and remain an absent member of the class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information regarding DMC's conduct to contact the company, including whistleblowers, former employees, shareholders and others.
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Lawyer advertisement. The law firm responsible for this announcement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar result with respect to any future matter. We welcome the opportunity to discuss your specific case. All communications will be treated confidentially.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234393
