SAN FRANCISCO, Nov. 29, 2024 (GLOBE NEWSWIRE) -- Celsius Holdings, Inc. (NASDAQ: CELH) and certain of its top executives are now the target of a securities class action.
Hagens Berman is investigating the allegations and urges investors in Celsius who purchased shares and suffered substantial losses to submit your losses now.
Class Period: Feb. 29, 2024 – Sept. 4, 2024
Lead Plaintiff Deadline: Jan. 21, 2025
Visit: www.hbsslaw.com/investor-fraud/celh
Contact the Firm Now: CELH@hbsslaw.com | 844-916-0895
Celsius Holdings, Inc. (CELH) Securities Class Action:
The complaint alleges that throughout the Class Period, Defendants misrepresented and concealed material adverse facts about Celsius’ outlook and expected financial performance, particularly as they pertained to its largest customer/distributor (PepsiCo or “Pepsi”).
Specifically, Defendants failed to disclose to investors that: (1) Celsius materially oversold inventory to Pepsi far in excess of demand, and faced a looming sales cliff during which Pepsi would significantly reduce its purchases of Celsius products; (2) as Pepsi drew down significant amounts of inventory overstock, Celsius’ sales would materially decline in future periods, hurting the company’s financial performance and future outlook; (3) Celsius’ sales rate to Pepsi was unsustainable and created a misleading impression of Celsius’ financial performance and future outlook; and (4) as a result, Celsius’ business metrics and financial prospects were not as strong as indicated in Defendants’ Class Period statements.
The truth began to emerge on May 28, 2024, when the price of Celsius shares dropped almost 13% as analysts digested some of the latest retail store trends reported by Nielsen. According to the complaint, analysts noted that Celsius’ sales growth slowed from the prior year period and sequentially warned that sales could be dramatically diminished as Pepsi reduced the amount of Celsius inventory it held.
Then, on Sept. 4, 2024, the price of Celsius shares dropped over 11%, after a Celsius investor presentation, during which Celsius revealed that it was seeing approximately $100 million to $120 million less in Pepsi orders compared to the prior year quarter and said Pepsi was holding several million more cases over the past 1 ½ years than it really needed to hold.
“We’re focused on whether Celsius may have misled investors about the sustainability of its sales rates to Pepsi,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Celsius and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now.
If you’d like more information and answers to frequently asked questions about the Celsius case and our investigation, read more.
Whistleblowers: Persons with non-public information regarding Celsius Holdings should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CELH@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
