PR Newswire
PHILADELPHIA, Oct. 20, 2023
PHILADELPHIA, Oct. 20, 2023 /PRNewswire/ -- Berger Montague is currently investigating potential violations of the federal securities laws on behalf of shareholders of XPEL, Inc. ("XPEL") (NASDAQ: XPEL).
CLICK HERE TO LEARN MORE ABOUT THE INVESTIGATION
XPEL sells, distributes, and installs after-market automotive products. The company offers automotive surface and paint protection, headlight protection, and automotive and architectural window films, as well as proprietary software.
On October 19, 2023, Culper Research issued a report alleging that XPEL "grossly understated its reliance on Tesla." In the prior week, Tesla stated that it would be eliminating XPEL from its supply chain. In response, XPEL stated that Tesla represented only 5% of its revenues. However, Culper Research estimated that Tesla actually represents 25% to 35% of XPEL's paint protection films ("PPF") business.
Further, Culper Research stated XPEL "is concealing a massive undisclosed risk from its primary supplier which threatens to upend the [XPEL]'s entire reason for being." Specifically, Culper Research claimed that XPEL's long-time supplier, entrotech, inc., formed a joint venture with PPG, which has integrated protection technology directly into OEM paint.
As support for its contentions, Culper Research reported that "XPEL has historically disclosed its substantial reliance on entrotech in its filings, yet conspicuously removed all mentions of entrotech in its most recent Form 10-K and 10-Qs."
Following this news, XPEL's share price fell by more than 17%, to close at $50.65, on October 19, 2023, on very heavy volume.
If you are an XPEL investor and would like to learn more about our investigation, please contact Berger Montague: James Maro at [email protected] or (267) 637-3176, or Andrew Abramowitz at [email protected] or (215) 875-3015 or CLICK HERE.
Whistleblowers: Anyone with non-public information regarding XPEL is encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., Delaware, San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts:
James Maro, Senior Counsel
Berger Montague
(267) 637-3176
[email protected]
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
[email protected]
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SOURCE Berger Montague
