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NEW YORK, Nov. 09, 2023 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against XPEL, Inc. (“XPEL” or the “Company”) (NASDAQ: XPEL).
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
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.
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