Shoals Technologies Group Inc. (NASDAQ: SHLS) experienced a modest uptick in after-hours trading Friday, with the stock rising 2% after the U.S. International Trade Commission (ITC) issued an initial determination in favor of Shoals in a dispute with Voltage, LLC.
An Administrative Law Judge concluded on February 6, 2026 that Voltage's imported LYNX trunk bus products violated Section 337 of the Tariff Act of 1930 by infringing patents held by Shoals. The ruling specifically ties the alleged infringement to Shoals' Big Lead Assembly, or BLA, technology.
Shoals develops electrical infrastructure products aimed at the energy transition market. The company designed its BLA solution to streamline utility-scale solar deployments by reducing the amount of material required, speeding installation timelines, and lowering labor costs, according to the company description.
In a statement responding to the initial determination, Shoals' CEO Brandon Moss said, "This initial ruling is a big step towards a win for American innovation and the domestic energy supply chain."
The ITC's preliminary finding is not the final step in the process. The commission's final determination is expected by June 2026 and may be subject to Presidential review. If the final determination is upheld, the ruling would bar the importation of trunk bus products that the ITC finds infringe on Shoals' intellectual property.
Separately, Shoals is pursuing an appeal of an earlier ITC decision concerning a different one of its patents. That appeal is currently underway in the U.S. Court of Appeals.
Market reaction to administrative rulings like this can be tied to expectations about enforcement outcomes and potential barriers to competing imports. In this instance, the initial ITC finding was followed by a modest after-hours increase in Shoals' share price, reflecting investor attention to the possible commercial and competitive implications of an upheld ruling.
Because the ITC process includes multiple steps - from the Administrative Law Judge's finding to the commission's final ruling and possible Presidential review - the ultimate impact depends on whether the initial determination is sustained through those subsequent stages.