Scott+Scott Attorneys at Law LLP file class action lawsuit against automobile paint manufacturer XPEL Inc. over allegedly misleading and defrauding investors
SAN ANTONIO, August 12, 2024 — Scott+Scott Attorneys at Law LLP recently filed a class action lawsuit in the United States District Court of the Western District of Texas against XPEL Inc. (NASDAQ: XPEL) and its chief executive officers on behalf of investors who – between November 8, 2023 and May 2, 2024 – purchased securities issued by the manufacturer of protective automobile paint and window coatings.
According to the lawsuit, XPEL failed to disclose that its competitors were increasingly dominating the market causing the company’s revenue growth between 2023 and 2024 to dwindle significantly. During a 2024 financial earnings call, XPEL’s Chief Executive Officer Ryan Pape promised investors “15 to 20 % sort of organic growth rates” which did not materialize.
While millions of XPEL shares were traded on NASDAQ, on May 2, 2024, the company announced its first quarter 2024 financial results reporting only 5% revenue growth year-over-year. As a result, XPEL’s stock price tumbled nearly 39% causing significant financial losses for investors.
“XPEL’s chief executives made false statements and omitted key facts about their position in the market to artificially inflate the value of their stock. By sugarcoating their company’s financial well-being, they harmed thousands of shareholders,” Scott+Scott partner Thomas Laughlin said.
If you purchased or otherwise owned XPEL Inc. common stock between November 8, 2023 and May 2, 2024, and you would like to discuss the financial loss, realized or unrealized, you have suffered, please contact attorney Nick Bruno at: (888) 734-4580 or at [email protected]. To find out more about this lawsuit, visit: https://scott-scott.com/case/xpel-inc/.
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