Johnson Fistel, LLP, a nationally recognized shareholder rights law firm, is currently investigating potential violations of federal securities laws by DMC Global Inc. (NASDAQ: BOOM) and certain of its executive officers. The investigation particularly focuses on whether there were misrepresentations or failures to timely disclose material, adverse information to investors, which could have influenced their decisions and subsequently led to investment losses. https://www.johnsonfistel.com/investigations/dmc-global-inc
Background of the Investigation
On October 21, 2024, DMC announced a revision to its financial guidance for the fiscal quarter concluding on September 30, 2024. The company now anticipates that its adjusted EBITDA will be approximately $5 million, significantly reduced from the previously forecasted range of $15 to $18 million. Additionally, DMC indicated that its third quarter financial results will incorporate charges related to inventory and bad debts amounting to approximately $5 million at DynaEnergetics, coupled with decreased fixed overhead absorption due to lower sales at both Arcadia and DynaEnergetics. Moreover, the company disclosed that its financial results will reflect an approximate $142 million non-cash goodwill impairment charge stemming from DMC's acquisition of a controlling interest in Arcadia in December 2021.
After this disclosure, the market value of DMC’s stock experienced a decline of $2.36 per share, or 18.3%, closing at $10.57 per share on October 22, 2024. This substantial decrease in stock price resulted in financial detriment to the investors.
Further developments occurred on November 4, 2024, when DMC released its financial outcomes for the third quarter of the fiscal year ending September 30, 2024. Following this announcement, DMC's stock value continued to decline, exhibiting a decrease of over 10% during mid-day trading on November 5, 2024.
What if I have relevant nonpublic information?
Individuals with nonpublic information regarding the company should consider whether to assist our investigation or take advantage of the SEC Whistleblower program. Under the SEC program, whistleblowers who provide original information may, under certain circumstances, receive rewards totaling up to thirty percent of any successful recovery made by the SEC. For more information, contact Jim Baker at (619) 814-4471 or jimb@johnsonfistel.com.
No Cost or Obligation to Participate
Interested DMC shareholders should be aware that there is no cost or obligation to participate in this investigation.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com.
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Contacts
Johnson Fistel, LLP
501 W. Broadway, Suite 800, San Diego, CA 92101
James Baker, Investor Relations or Frank J. Johnson, Esq., (619) 814-4471
jimb@johnsonfistel.com or fjohnson@johnsonfistel.com
