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BOOM.US
id: 1421
DMC Global (BOOM) Goodwill Impairment Case
D. Colorado
Court1:24-cv-03387
Case number05/03/2024
Class period Start11/04/2024
Class period End02/04/2025
Lead Plaintiff motion deadline- $BOOM investors filed a lawsuit against DMC Global for misleading them about the goodwill valuation of its Arcadia segment and operational challenges.
- On October 21, 2024, DMC Global announced a $142 million goodwill write-down for Arcadia Products. Following this news, $BOOM dropped by over 18%,
Case Details:
Between May 3, 2024, and October 21, 2024, DMC Global assured investors that Arcadia Products, which held all the company's goodwill, was performing well despite construction market challenges.
In its Q2 2024 earnings report on August 1, 2024, DMC Global reaffirmed its goodwill valuation of $141.7 million, claiming strong market opportunities and no impairment risks.
However, on October 21, 2024, DMC Global announced a $142 million goodwill impairment for Arcadia Products, blaming weak demand in high-end construction, poor internal processes, and ERP mismanagement.
Following this announcement, $BOOM plummeted by 18.3% on October 22, 2024.
Based on these events, $BOOM investors filed a lawsuit against DMC Global, accusing the company of the following:
- It misled investors about the stability and value of its Arcadia Products segment.
- It downplayed operational challenges and risks tied to its goodwill valuation.
Investors believe DMC Global misrepresented the value and stability of its Arcadia Products segment while downplaying operational and market challenges.
Case Status
Lead Plaintiff Submission
Alleged Offence
Mismanagement,
Misleading Statements,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
10/21/2024
Filing date
12/06/2024
Lead Plaintiff Deadline
02/04/2025