#USA #New York #Pomerantz LLP #DMC Global Inc #stock fraud

DMC Global Inc. Under Investigation

The Pomerantz Law Firm has initiated an investigation concerning DMC Global Inc. (NASDAQ: BOOM) following significant financial disclosures that have raised concerns among investors. This inquiry centers around potential securities fraud and unlawful business practices allegedly committed by the company's officers and directors.

On October 21, 2024, DMC issued a press release revising its financial guidance for the third quarter of its fiscal year, which concluded on September 30, 2024. The company now anticipates an adjusted EBITDA of approximately $5 million, drastically lower than the previous estimate of $15 to $18 million. Furthermore, DMC reported substantial charges related to inventory and bad debts—approximately $5 million—in its manufacturing business, DynaEnergetics. These troubles were compounded by lower fixed overhead absorption due to reduced sales in both Arcadia and DynaEnergetics, leading to a staggering $142 million non-cash goodwill impairment charge related to the acquisition of Arcadia in December 2021.

This dismal forecast led to a sharp decline in DMC's stock price, which fell $2.36 per share (18.25%) to close at $10.57 on October 22, 2024. Further bad news arrived on November 4, when the company reported its financial results for the third quarter. DMC disclosed that sales for that quarter totaled $152.4 million, marking an 11% decrease both from the previous quarter and the same period last year. The company reiterated the non-cash goodwill impairment charge, which only added to the investors' worries. Following this news, the stock price dipped again, losing $0.59 per share (6%) and finishing at $9.25 on November 5.

Given the sharp financial downturn and the concerning audit of its accounting practices, many investors are left wondering about the integrity of DMC Global's operations and leadership. Pomerantz LLP encourages affected investors to reach out and provide any relevant information regarding potential misconduct.

Pomerantz LLP operates from offices in major cities such as New York, Chicago, and Los Angeles. The firm is renowned for its expertise in corporate, securities, and antitrust class-action litigation. Founded by Abraham L. Pomerantz, widely regarded as the dean of the class action bar, the firm has a long history of advocating for the rights of investors who have fallen prey to fraud and corporate malpractice.

Advisories for Investors

DMC Global investors who may have experienced losses as a result of the company's recent performance are advised to contact Danielle Peyton at Pomerantz LLP for guidance on how to proceed with their claims. The firm's track record illustrates their commitment to securing justice and financial recovery for investors impacted by similar situations in the past.

Pomerantz LLP remains dedicated to uncovering the truth and ensuring that corporate entities operate transparently and ethically, thereby protecting investor interests that are often overlooked.

For further details, contact:

• - Danielle Peyton

Email: [email protected]
Phone: 646-581-9980 ext. 7980

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