DEADLINE FOR INVESTORS APPROACHES: Faruqi & Faruqi, LLP Investigates Claims on Behalf of XPEL Investors

James (Josh) Wilson, Securities Litigation Partner at Faruqi & Faruqi, LLP, 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 stock or options between November 8, 2023 and May 2, 2024 and would like to discuss your legal rights, phone call Faruqi & Faruqi Partner Josh Wilson direct bee 877-247-4292 or 212-983-9330 (extension 1310). You can also click here for additional information: www.faruqilaw.com/XPEL.

New York, New York–(Newsfile Corp. – August 16, 2024) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against XPEL, Inc. (“XPEL” or the “Company”) (NASDAQ: XPEL) and reminds investors of the Deadline October 7, 2024 to serve as lead plaintiff in a federal securities class action lawsuit 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 set forth below, the complaint alleges that the Company and its executives violated the federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) XPEL’s competitors were taking an increasing share of the market; (ii) as a result, the Company’s revenue growth became increasingly dependent on existing customers and partners; (iii) as a result, the Company’s revenue growth for 2023 and 2024 declined; and (iv) as a result, 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 published a report alleging that XPEL had “grossly underestimated its dependence on Tesla.” The week prior, Tesla stated that it would remove XPEL from its supply chain. In response, XPEL stated that Tesla only represented 5% of its revenue. However, Culper Research estimated that Tesla actually represents 25% to 35% of XPEL’s paint protection films (“PPF”) business. Culper Research further alleged that XPEL “is hiding a huge, undisclosed risk to its primary supplier that threatens to disrupt (XPEL’s) entire raison d’être.” Culper Research specifically alleged that XPEL’s longtime supplier, entrotech, inc., has formed a joint venture with PPG that has integrated protection technology directly into OEM paints. Culper Research noted that while “XPEL has historically indicated in its filings that it is heavily reliant on entrotech,” it “notably removed all references to entrotech from its most recent Form 10-K and 10-Qs.”

On this news, XPEL’s stock price fell $10.57 per share, or over 17%, to close at $50.65 per share on October 19, 2023.

On May 2, 2024, XPEL issued a press release announcing its financial results for the first quarter of 2024. Among other results, XPEL reported GAAP earnings per share of $0.24, which missed consensus estimates by $0.06, and revenue of $90.1 million, which missed consensus estimates by $3.99 million. Regarding its full-year 2024 outlook, the company advised that “the (annual) revenue growth forecast is revised downward from 15% to 8-10%.”

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

The Court-appointed Lead Plaintiff is the investor with the largest financial interest in the relief sought by the class who is sufficient and typical of class members who directs and conducts the litigation on behalf of the putative class. Any member of the putative class may petition the Court to serve as lead plaintiff through counsel of their choosing, or may elect to do nothing and remain an absent class member. Your ability to share in any recovery will not be affected by the decision to serve as lead plaintiff.

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

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To view the source version of this press release, go to https://www.newsfilecorp.com/release/220115