Pomerantz Law Firm Files Class Action Against DMC Global Inc. for Investor Losses

Pomerantz LLP Launches Class Action Against DMC Global Inc.

On January 21, 2025, Pomerantz LLP announced the initiation of a class action lawsuit against DMC Global Inc. (NASDAQ: BOOM), aimed at investors who have suffered losses due to alleged securities fraud and other unlawful business practices. Shareholders who purchased DMC securities during the specified class period are encouraged to act quickly, with a deadline of February 4, 2025, to seek appointment as Lead Plaintiff in the case. This notice serves as a critical reminder for affected investors to understand their rights and the upcoming legal proceedings.

Background of the Case

The lawsuit was filed in the aftermath of significant stock price declines for DMC Global Inc., which were triggered by recent financial revelations. On October 21, 2024, the company revised its financial guidance for the third fiscal quarter, drastically downgrading its adjusted EBITDA projections from an estimated $15 million to a mere $5 million. Alongside the gloomy forecast, DMC disclosed substantial inventory write-offs and outstanding debt charges of around $5 million within its DynaEnergetics manufacturing sector. Additionally, a staggering non-cash goodwill impairment charge of approximately $142 million associated with the acquisition of Arcadia was also revealed.

These unexpected disclosures led to a sharp drop in DMC's stock price. On October 22, 2024, the stock fell by $2.36 per share—an alarming 18.25%—closing at $10.57. Just a short while later, when DMC released its third-quarter financial results on November 4, 2024, further sales declines were reported. The company's quarterly sales reached $152.4 million, aligning with expectations of 11% sequential and year-over-year decreases. This information compounded investor losses, resulting in another price drop of $0.59 per share, or 6%, closing at $9.25 on November 5, 2024.

What Investors Should Know

Pomerantz LLP, a well-respected law firm in corporate and securities class actions, advises DMC Global investors to contact them promptly for further information. Interested shareholders should reach out to Danielle Peyton via email or call 646-581-9980, referencing extension 7980. To strengthen their position in potential proceedings, it’s beneficial for contacting parties to provide contact details and the number of shares acquired.

The law firm, known for its historic role in advancing the rights of investors, aims to restore justice for those impacted by alleged misconduct. Investors are encouraged to join the class action to seek recovery of their losses.

A Legacy of Advocacy

Founded by the late Abraham L. Pomerantz, the firm has carved out a reputation as a pioneer in the realm of securities class actions. With over 85 years of experience, Pomerantz LLP continues to advocate for shareholders’ rights against corporate malpractice, having reclaimed billions in damages over its long-standing history. The firm’s presence spans globally, with offices in major cities including New York, Chicago, Los Angeles, London, Paris, and Tel Aviv.

For more information about the class action lawsuit against DMC Global Inc. or regarding similar past cases, shareholders can visit Pomerantz’s website.

This ongoing case is not merely an isolated incident but reflects the broader context of challenges investors face when confronted with unforeseen market shifts. Stakeholders must remain vigilant and proactive, considering the implications of their investment decisions and the necessity for transparency in corporate communications.