OAKLAND, Calif.--(BUSINESS WIRE)--Gibbs Law Group is investigating a potential XPEL Securities Class Action Lawsuit on behalf of shareholders who lost money in XPEL, Inc. (NASDAQ: XPEL). Previously, XPEL plummeted over 17% on October 19, 2023, after Culper Research published a report alleging that the company “grossly understated its substantial reliance on Tesla” and “is concealing a massive undisclosed risk.”
What Should XPEL Investors Do?
If you invested in XPEL, Inc., visit our website by clicking here, or call us toll-free at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether XPEL, Inc. has violated federal securities laws by providing false or misleading statements to investors.
What is the XPEL Securities Lawsuit Investigation About?
On Thursday, October 19, 2023, Culper Research published a report alleging that protective film and coating company XPEL, Inc. has been concealing and misstating its vulnerabilities. The report alleges that, despite XPEL claiming in a Form 8-K filing that Tesla represents only 5% or less of its revenue pertaining to paint protection film, interviews with XPEL installers reveal the true number is likely 25% to 35%. According to Culper Research, XPEL published the 5% figure in response to news reports on October 11, 2023, suggesting Tesla had begun offering its own pain protection films, effectively disintermediating XPEL.
Following this report, XPEL’s stock price dropped 17% on Thursday, October 19, 2023, causing significant harm to investors.
Then, on May 2, 2024, XPEL issued a press release announcing its financial results for the first quarter of 2024, stating that it was revising its annual revenue growth projection downward from 8-10% to 15%. XPEL also reported GAAP earnings per share of $0.24, missing consensus estimates by $0.06, and revenue of $90.1 million, missing consensus estimates by $3.99 million.
Following this news, XPEL’s stock price plunged over 38% on May 2, 2024, causing significant harm to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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