Shoals Technologies Group, Inc. (NASDAQ: SHLS) shares are experiencing a notable rise on the US stock charts, following a favorable litigation ruling. As of the latest pre-market review, SHLS shares have surged by 27.06%, trading at $6.85. This uptick in stock price comes in the wake of a significant legal triumph for the company.
ITC Ruling in Favor of Shoals
The U.S. International Trade Commission (ITC) granted Shoals Technologies a positive ruling on August 30, 2024, in its patent infringement action against Voltage, LLC and its related foreign firm.
Voltage was found to have violated Section 337 of the Tariff Act of 1930 by bringing illegal LYNX trunk bus goods into the country, according to an Administrative Law Judge at the ITC. This decision establishes a standard for similar instances involving patent infringement in the future and supports Shoals’ stance on intellectual property rights.
New Patents will Enhance Intellectual Property Portfolio of SHLS
In addition to the legal victory, Shoals has recently been awarded two new patents for its Big Lead Assembly (BLA) technology—U.S. Patents 12,015,375 and 12,015,376. These patents complement the existing ‘153 patent (U.S. Patent 11,689,153) that was the subject of the ITC case. The new patents underscore Shoals’ ongoing commitment to innovation and its leadership in developing advanced solar panel connectors.
Future Legal and Market Implications
Should the ITC’s initial ruling be upheld, it will prevent the importation of photovoltaic connectors that infringe upon Shoals’ intellectual property. This decision aims to curb the distribution of unauthorized products, thus safeguarding American innovation and jobs. The ITC’s investigation is expected to conclude by late December, with a potential Presidential review in February 2025.
Once the ITC case is resolved, Shoals plans to proceed with its stayed District Court case against Voltage in North Carolina, seeking monetary damages. Shoals Technologies Group remains dedicated to protecting its intellectual property and investing in American manufacturing, reaffirming its commitment to fair competition and industry integrity.
