DMC (US:BOOM) GlobeNewswire News Roomยท2025-01-28 12:00Core Viewpoint - DMC Global Inc. is facing a federal securities class action due to alleged misleading statements and financial misrepresentations during the Class Period from May 5, 2024, to November 4, 2024 [1][5]. Financial Performance - DMC Global's third quarter sales for 2024 are expected to be approximately $152 million, down from prior guidance of $158 million to $168 million [3]. - The company reported a net loss of $159.4 million for Q3 2024, with adjusted EBITDA of $5.7 million [4]. - A significant non-cash goodwill impairment charge of approximately $142 million is expected due to the underperformance of Arcadia Products, which was acquired in December 2021 [3]. Stock Performance - Following the announcement of weaker-than-expected sales and the goodwill impairment charge, DMC Global's share price dropped by approximately 18%, from $12.93 to $10.57 per share [3]. - After the release of Q3 financial results, the share price further declined from $9.84 to $9.25 per share [4]. Legal Allegations - The complaint alleges that DMC Global made false or misleading statements regarding the goodwill associated with Arcadia and failed to disclose inadequate internal systems affecting operations [5]. - It is claimed that these misrepresentations led to inaccurate public disclosures and guidance regarding the company's financial health [5].