Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson encourages investors who have suffered losses in excess of $75,000 through Celsius to contact him directly to discuss their options.
If you have a loss of more than $75,000 Celsius between 29 February 2024 and 4 September 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson live at the 877-247-4292 or 212-983-9330 (Ext. 1310).
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New York, New York–(Newsfile Corp. – January 5, 2025) – Faruqi & Faruqi, LLP, a national securities law firm, is investigating potential claims against. Celsius Holdings (NASDAQ:), Inc. (“Celsius” or the “Company”) (NASDAQ: CELH) and reminds investors of January 21, 2025 deadline seeking the role of lead plaintiff in a securities class action filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has received hundreds of millions of dollars from investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Celsius oversold PepsiCo (NASDAQ: ), Inc.; “Pepsi”) more than necessary, and faced an upcoming sale in which Pepsi would significantly reduce its purchases of Celsius products; (2) as Pepsi reduced significant amounts of inventory, Celsius' sales would decline significantly in the future, harming Celsius' financial performance and image; (3) Celsius' sales rate to Pepsi was uncontrollable and created a misleading impression of Celsius' financial system and outlook; (4) as a result, Celsius' business metrics and financial prospects were weak as reflected in the Defendants' Dividend Statements; and (5) as a result, defendants' statements about Celsius' outlook and expected financial performance were false and misleading at all relevant times.
On May 27, 2024, Celsius' stock price dropped nearly 13% as analysts and investors digested some of the latest sales trends reported by Nielsen.
Then, on September 4, 2024, the defendants disclosed, among other things, that Celsius' sales to Pepsi were reduced from “approximately ($) 100 million to ($) 120 million . . . that Celsius was “still seeing these inventory levels reduced” and “expanded” in the third quarter of 2024, and “just to be precise ($)100 million to ($)120 million figure, we see about ($)100 million to ($)120 million less of orders to Pepsi in Q3 this year. On this news, the price of Celsius stock is more than 11%.
Finally, on November 6, 2024, Celsius announced that Celsius' total third quarter 2024 “revenue was approximately $265.7 million, compared to $384.8 million” in the third quarter of 2023, a decrease of 31% ; Celsius' North American revenue fell 33%; and “'(r)revenue from (Pepsi) declined $123.9 million,” while “(c)early, related marketing benefits created revenue headwinds.” Celsius also revealed that its quarterly “net income decreased by $71.9 million, or 37%”; that in the quarter “(g)incremental profit margin was 46.0% . and that “decrease in gross profit due to advertising allowances, incentives, and other billbacks as a percentage of total revenue” caused by Pepsi's drawdown. On this news, the price of Celsius stock fell by 5 extra.
A court-appointed lead plaintiff is an investor with a substantial financial interest in the relief sought by a sufficient and common class of class members who administers and oversees the lawsuit on behalf of the putative class. Any privileged class member may move the Court to act as lead plaintiff through counsel of his or her own choosing, or may choose to remain inactive and remain a non-class member. Your ability to share in any recovery is not affected by the decision to act as the lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information about Celsius' conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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