Faruqi & Faruqi, LLP is investigating the claims on behalf of DMC investors Investing.com

Faruqi & Faruqi, LLP securities litigation partner James (Josh) Wilson He encourages investors who have suffered losses greater than $75,000 in DMC to contact him directly to discuss their options

If you have suffered losses greater than $75,000 DMC between May 3, 2024 and November 4, 2024 and want to discuss your legal rights, call a Faruqi & Faruqi partner Josh Wilson direct on 877-247-4292 or 212-983-9330 (ext. 1310).

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New York, New York–(Newsfile Corp. – January 1, 2025) – 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 The deadline is February 4, 2025 to seek the role of 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 company has recovered hundreds of millions of dollars for investors since its inception in 1995. See www.faruqilaw.com.

As set forth 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: (1) goodwill associated with Acadia’s products was overstated due to adverse events; and circumstances affecting that reporting segment; (2) DMC Global’s materially inadequate internal systems and processes adversely affected its operations; (3) the Company’s inadequate systems and processes prevented it from ensuring that its guidance was reasonably accurate and that its public disclosures were timely, accurate and complete; (4) as a result, Defendants misrepresented DMC Global’s business and financial results; 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 ending September 30, 2024. The company now anticipates its adjusted EBITDA to be approximately $5 million, a significant reduction from the previously forecast range of 15 up to USD 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 Arcadia and DynaEnergetics. Moreover, the company disclosed that its financial results will reflect approximately $142 million in non-cash goodwill impairment arising from DMC’s acquisition of a controlling interest in Arcadia in December 2021.

Following this announcement, the market value of DMC stock fell $2.36 per share, or 18.3%, to close at $10.57 per share on October 22, 2024. This significant decline in the stock price resulted in a financial loss for investors.

A further development occurred on November 4, 2024, when DMC announced 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 drop of over 10% mid-day trading on November 5, 2024.

A court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class, who is adequate and typical of the class members and who directs and oversees the litigation on behalf of the putative class. Any putative class member may propose to 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 the decision whether or not you will be the lead plaintiff.

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

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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.

To view the original version of this press release, visit https://www.newsfilecorp.com/release/235678