Shoals Technologies $70M Securities Class Action Settlement

Brandon Richards

Legal Content Writer

Published

June 8, 2026 1:21 PM

Updated

June 8, 2026

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired Shoals Technologies Group Inc. common stock between May 16, 2022, and May 7, 2024, inclusive, including those who purchased shares in Shoals' December 2022 secondary public offering and suffered damages as a result.

Additional details

Both individuals and entities can be class members.
Class members who held Shoals common stock through a brokerage firm or other nominee are the beneficial owners and may file a claim.
The actual beneficial owner or a legal representative must submit the claim.
Joint owners must each sign the claim form.
Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others and must provide proof of authority.
Class members must submit a separate claim for each legal entity.

How much can class members get?

The total settlement fund is $70,000,000. The amount each class member receives depends on several factors:

The number of valid claims submitted
The number of shares purchased or acquired during the class period
The timing of each purchase and sale
The total recognized claims of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

The estimated average recovery is approximately $0.34 per share before deductions.
After estimated deductions of $0.11 per share for attorneys' fees, expenses and service awards to class representatives, the net average recovery is approximately $0.23 per share.
Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each share.
The settlement administrator will calculate each class member's recognized loss amount for each share based on the purchase and sale dates and the per-share inflation amounts in the plan of allocation (see the inflation table on Page 11 of the class notice):

For shares sold on or before Aug. 1, 2023, the recognized loss amount is $0.
For shares sold between Aug. 2, 2023, and Nov. 12, 2024, the recognized loss amount is the lesser of the inflation amount at purchase minus the inflation amount at sale or the purchase price minus the sale price.
For shares held as of Nov. 12, 2024, and sold on or before Feb. 10, 2025, the recognized loss amount is the least of the inflation amount at purchase, the purchase price minus the sale price or the purchase price minus the average closing price up to the sale date (see the closing price table on Page 12 of the class notice).
For shares held as of the close of trading on Feb. 10, 2025, the recognized loss amount is the lesser of the inflation amount at purchase or the purchase price minus $4.92.
For shares purchased directly in the December 2022 secondary public offering, the settlement administrator will multiply the recognized loss amount by 1.25.

The settlement administrator will set any recognized loss amount that calculates to a negative number or zero to $0.
If total recognized claims exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
Class members whose payment would be less than $10 will not receive a payout.

How to claim a Shoals securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Aug. 25, 2026.

Settlement administrator's mailing address: Shoals Securities Settlement, Claims Administrator, c/o Verita Global, P.O. Box 301133, Los Angeles, CA 90030-1133

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or full taxpayer identification number. They must also provide holdings and transaction information, including:

Number of shares held as of the close of trading on May 15, 2022
Trade dates for purchases, acquisitions and sales from May 16, 2022, through Feb. 10, 2025
Number of shares purchased, acquired or sold
Total purchase, acquisition or sale price
Number of shares held as of the close of trading on Feb. 10, 2025

Class members must also provide documentation to support their transactions in Shoals common stock. Acceptable proof includes:

Broker confirmation slips
Monthly broker account statements
Authorized statements from a broker containing the transactional and holding information found in a confirmation slip or account statement

Payout options

Physical check
Electronic payment

$70 million settlement fund

The $70,000,000 settlement fund includes:

Settlement administration costs: To be determined
Attorneys' fees: Up to $21,000,000
Attorneys' expenses: Up to $650,000
Service awards to class representatives: Up to $40,000 total
Payments to eligible class members: Remainder of the fund

Important dates

Deadline to file a claim: Aug. 25, 2026
Opt-out deadline: Sept. 4, 2026
Fairness hearing: Sept. 28, 2026

When is the Shoals securities class action settlement payout date?

The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Shoals Technologies Group Inc. and other defendants made materially false and misleading statements and omitted material facts in some of the company's SEC filings and other public disclosures. The plaintiffs claimed these misstatements artificially inflated the price of Shoals common stock in violation of federal securities laws.

The defendants denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.