DEADLINE ALERT: Faruqi & Faruqi, LLP Investigates Claims From XPEL Investors

Faruqi & Faruqi, LLP securities litigation partner James (Josh) Wilson encourages investors who have suffered losses of more than $100,000 in XPEL to contact him directly to discuss their options

If you suffered losses of more than $100,000 investing in XPEL stocks or options between November 8, 2023 and May 2, 2024 and you would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson direct TO 877-247-4292 or 212-983-9330 (Ext. 1310). You can also click here for additional information: www.faruqilaw.com/XPEL.

New York, New York–(Newsfile Corp. – August 18, 2024) – Faruqi & Faruqi, LLP, a national securities law firm, is investigating potential claims against XPEL, Inc. (“XPEL” or the “Company”) (NASDAQ: XPEL) and reminds investors of Deadline October 7, 2024 to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm 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 executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) XPEL’s competitors were hijacking an increasingly market sea; (ii) as a result, the Company’s revenue growth has become increasingly dependent on existing customers and partners; (iii) as a result, the Company’s revenue growth for 2023 and 2024 decreased; and (iv) as a result, the defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis.

On October 19, 2023, Culper Research issued a report claiming that XPEL “significantly underestimated its reliance on Tesla.” The previous week, Tesla said it would remove XPEL from its supply chain. In response, XPEL stated that Tesla accounted for only 5% of its revenue. However, Culper Research estimated that Tesla actually accounts for 25% to 35% of XPEL’s paint protection film (“PPF”) business. Culper Research also stated that XPEL “hides a massive undisclosed risk from its core vendor that threatens to overturn (XPEL’s) entire raison d’être.” Specifically, Culper Research alleged that XPEL’s long-time supplier, entrotech, inc., formed a joint venture with PPG that integrated the protective technology directly into the OEM paint. Culper Research noted that while “XPEL has historically disclosed that it relies substantially on entrotech in its filings,” it has “conspicuously removed all mention of entrotech in its most recent Form10-Ks and 10-Qs.”

On the news, XPEL’s stock price fell $10.57 per share, or more than 17%, to $50.65 per share on October 19, 2023.

Then on May 2, 2024, XPEL issued a press release announcing its financial results for the first quarter of 2024. Among other things, XPEL reported GAAP earnings per share of $0.24, missing consensus estimates by 0 $.06 and revenue of $90.1 million, missing. consensus estimates at $3.99 million. Regarding the outlook for 2024, the company informed that “annual revenue growth projections are revised downward to 8-10% from 15%.

On this news, XPEL’s stock price fell $20.93 per share, or 38.91%, to $32.86 per share on May 2, 2024.

The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class, which is appropriate and typical of class members conducting and overseeing litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of his or her choosing, or may choose to do nothing and remain an absent class member. Your ability to participate in any recovery is not affected by your decision to serve as lead claimant.

Faruqi & Faruqi, LLP also encourages anyone with information regarding XPEL’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

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Advertising lawyer. The law firm responsible for this advertisement 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 particular case. All communications will be treated confidentially.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/220243