Faruqi and Faruqi, Litigation Partner for LLP James (Josh) Wilson He encourages investors who have suffered losses in DMC to contact him directly to discuss their options
If you bought or acquired securities in DMC between November 3, 2024 and November 4, 2024 And you’d like to discuss your legal rights, call your partner Faruqi and Faruqi Josh Wilson direct on 877-247-4292 or 212-983-9330 (Ext. 1310).
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New York, New York – (NewsFile Corp. – January 25, 2025) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against DMC Global (NASDAQ 🙂 Inc . (“DMC” or The The “Company”) (NASDAQ: BOOM) and reminds investors of February 4, 2025. seek the role of lead plaintiff in a federal securities class action filed against the company.
Faruqi and Faruqi is a leading national law firm with offices in New York, Pennsylvania, California and Georgia. The company has taken out hundreds of millions of dollars for investors since it was founded in 1995. See www.faruqilaw.com.
As detailed, 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: (1) the goodwill associated with Acadia’s products was overstated due to adverse events and circumstances affecting that reporting segment; (2) materially inadequate internal systems and processes of DMC Global adversely affected its operations; (3) Inadequate company systems and processes prevented him from ensuring that his guidance was reasonably accurate and that his public disclosures were timely, accurate and complete; (4) as a result, the defendants misrepresented the business and financial results of DMC Global; and/or (5) as a result, the company’s public statements were materially false, misleading or lacked a reasonable basis.
On October 21, 2024, DMC announced a revision to its financial guidance for the fiscal quarter ended September 30, 2024. The company now expects adjusted EBITDA to be approximately $5 million, down significantly from the previously forecast range of $15 million to $18 million. Additionally, DMC indicated that its third quarter financial results will include inventory and bad debt charges of approximately $5 million at Dynaenergetics, along with reduced fixed overhead absorption due to lower sales at both Arcadia and DynaEnergetics. Further, the company disclosed that its financial results will reflect approximately $142 million of an undisclosed goodwill impairment charge arising from DMC’s acquisition of a controlling interest in Arcadia in December 2021.
Following this disclosure, the market value of DMC’s stock fell $2.36 per share, or 18.3%, to close at $10.57 per share on October 22, 2024. This significant decrease in share price resulted in financial damages to investors.
A further development occurred on November 4, 2024, when DMC announced its financial results for the third quarter of the fiscal year ended September 30, 2024. Following this announcement, DMC’s stock value continued to decline, showing a decrease of over 10 % during mid-day trading on November 5, 2024.
A court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class that is adequate and typical of class members directing and overseeing litigation on behalf of the purported class. Each putative class member can move the Court to serve as lead plaintiff through counsel of their choosing, or they can choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information about DMC’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Advertising of lawyers. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your specific case. All communications will be treated confidentially.
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