NEW YORK, NY / ACCESS Newswire / January 27, 2025 / Pomerantz LLP announces that a class action lawsuit has been filed against DMC Global Inc. ("DMC Global," "DMC," or the "Company") (NASDAQ:BOOM) and certain officers. The class action, filed in the United States District Court for the District of Colorado, and docketed under 25-cv-00277, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired DMC Global securities between January 29, 2024 and November 4, 2024, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased or otherwise acquired DMC Global securities during the Class Period, you have until February 4, 2025 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
DMC Global is a publicly-traded, diversified industrial company that operates through three main business and reporting segments: (i) Arcadia Products: specializing in architectural building products, including composite decking, railing, and other outdoor living products; (ii) DynaEnergetics: focusing on energy products, particularly in the oil and gas industry, offering perforating systems and other well-completion tools; and (iii) NobelClad: developing and manufacturing explosion-resistant composite metals used in various industries, including oil and gas, marine, and defense.
During the years ended December 31, 2023 and 2022, Arcadia Products represented approximately 42% and 46% of DMC Global’s consolidated net sales, DynaEnergetics represented approximately 44% and 40%, and NobelClad represented approximately 15% and 14%, respectively.
DMC Global’s primary division, Arcadia Products, which was acquired in 2021, accounted for all of the goodwill on DMC Global’s books. According to DMC Global’s filing with theU.S. Securities and Exchange Commission ("SEC") Form 10-K for the year ended December 31, 2023, at that time the carrying value of its goodwill was $141,725,000.
The Complaint alleges that, throughout the Class Period, Defendants’ made statements that were materially false and misleading when made because they misrepresented and failed to disclose the following adverse facts about DMC Global’s business, operations, and prospects which were known to Defendants or recklessly disregarded by them: (i) the goodwill associated with Acadia Products was overstated due to the adverse events and circumstances affecting that reporting segment; (ii) DMC Global’s materially inadequate internal systems and processes were adversely affecting its operations; (iii) the Company’s inadequate systems and processes prevented it from ensuring reasonably accurate guidance and that its public disclosures were timely, accurate, and complete; (iv) as a result, Defendants misrepresented DMC Global’s operations and financial results; and/or (v) as a result, the Company’s public statements were materially false, misleading, or lacked a reasonable basis when made.
On October 21, 2024, after market close, the Company issued a press release entitled, "DMC Global Provides Business and Strategic Review Update, Announces Governance Changes," which it also filed on Form 8-K with the SEC, and which stated in pertinent part: "DMC Global [] today provided an update on its business conditions and revised its third quarter financial guidance. The Company also commented on its strategic review process and announced governance changes. DMC said third quarter sales are expected to be approximately $152 million versus prior guidance of $158 million to $168 million. The results reflect weaker-than-expected sales at both Arcadia Products ("Arcadia"), DMC’s architectural building products business, and DynaEnergetics, DMC’s energy products business."
On this news, DMC Global common stock dropped more than 18%, from a $12.93 per share closing price on October 21, 2024, to a close of $10.57 per share the next day, on extremely high volume.
Then, on November 4, 2024, after market close, the Company issued a press release entitled, "DMC Global Reports Third Quarter Financial Results," which it also filed on Form 8-K with the SEC, and in which it reported Q3 2024 sales of $152.4 million, a $159.4 million net loss (inclusive of a $141.7 million goodwill impairment charge at Arcadia Products), and adjusted EBITDA of $5.7 million.
On this news, the price of DMC Global common stock dropped another 6%, from a $9.84 per share closing price on November 4, 2024, to a close of $9.25 per share the next day, on unusually high volume.
On November 13, 2024, the Company announced that Defendant Michael Kuta would retire as the Company’s President, Chief Executive Officer ("CEO") and as a member of the Board effective November 29, 2024, and that James O’Leary would assume the role of interim President and CEO.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
SOURCE: Pomerantz LLP
View the original press release on ACCESS Newswire
COMTEX_462251429/2457/2025-01-27T19:15:43