Faruqi & Faruqi Securities LLP partner James (Josh) Wilson encourages investors who have suffered losses exceeding $75,000 to contact him directly to discuss their options.
If you suffer losses exceeding $75,000 Celsius Between February 29, 2024 and September 4, 2024 If you would like to discuss your legal rights, contact Farooqui & Farooqui Partner Josh Wilson live in 877-247-4292 or 212-983-9330 (ext. 1310).
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New York, New York–(Newsfile Corp. – December 29, 2024) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Celsius Holding (NASDAQ:), Inc. (“Celsius” or the “Company”) (NASDAQ: CELH) and reminds investors of January 21, 2025 deadline For the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.
Farooqui & Farooqui is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated the federal securities laws by making false and/or misleading statements and/or failing to disclose the following: (1) the stock of PepsiCo (NASDAQ:), Inc.; “Pepsi”) has a significant surplus in demand, and faces a looming sales cliff, during which Pepsi will significantly reduce its purchases of Celsius products; (2) as Pepsi retires significant amounts of excess inventory, Celis' sales will decline significantly in future periods, harming Celcium's financial performance and prospects; (3) Celsius' turnover to Pepsi was unsustainable and created a misleading impression of Celsius' financial performance and prospects; (4) as a result, Celsius's business metrics and financial outlook were not as robust as demonstrated in Defendants' Class Period Statements; and (5) therefore, Defendants' statements regarding Celsius's prospects and expected financial performance were false and misleading at all relevant times.
On May 27, 2024, Celsius' stock price fell approximately 13% as analysts and investors digested some of the latest retail store trends reported by Nielsen.
Subsequently, on September 4, 2024, the defendants disclosed, among other things, that Celsius's sales to Pepsi had declined from “about $100 million to approximately $120 million…from what (Pepsi) had requested in the fourth quarter,” that Celsius “continues to see a decline in these inventory levels” and that they “increased” in the third quarter of 2024, so “only to be precise with $100 million to ($)120 million Dollars, we are seeing orders to Pepsi decrease by about $100 million to $120 million in the third quarter of this year compared to the third quarter of last year. Based on this news, Celsius stock price rose more than 11%.
Finally, on November 6, 2024, Celsius revealed that total revenues for the third quarter of 2024 “were approximately $265.7 million, compared to $384.8 million in the third quarter of 2023, a decrease of 31%.” Celsius' revenues in North America decreased by 33%; and “its revenues from Pepsi decreased $123.9 million,” while “(c)currently, related retailer promotional allowances created revenue headwinds.” Celsius also revealed that its “gross quarterly earnings decreased by $71.9 million, or 37%.” that the quarterly gross profit margin “(g) was 46.0%…, a decrease of 440 basis points from 50.4% for the same period in 2023”; and that “the decrease in gross profit was due to promotional allowances, incentives and other billings as a percentage of gross revenues” resulting from Pepsi's withdrawal. On this news, Celsius' stock price fell an additional 5%.
A court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class and is appropriate and typical for members of the class who direct and oversee litigation on behalf of the putative class. Any member of the putative class may ask the court to serve as lead plaintiff through counsel of their choosing, or they may choose to do nothing and remain an absent member of the class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information about Celis' conduct to contact the company, including whistleblowers, former employees, shareholders and others.
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Lawyer advertisement. The law firm responsible for this announcement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar result with respect to any future matter. We welcome the opportunity to discuss your specific case. All communications will be treated confidentially.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234727
