Faruqi & Faruqi LLP Securities Litigation Partner James (Josh) Wilson encourages investors who have suffered losses greater than $75,000 in Celsius to contact him directly to discuss their options
If you suffered losses greater than $75,000 Celsius between February 29, 2024 and September 4, 2024 and would like to discuss your legal rights, call partner Faruqi & Faruqi Josh Wilson directly has 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 leading national securities law firm, is investigating possible claims against Securities in Celsius securities (NASDAQ:), Inc. (“Celsius” or the “Company”) (NASDAQ: CELH) and reminds investors of the Deadline January 21, 2025 to seek lead plaintiff status in a federal securities class action lawsuit that has been 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 raised 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 officers violated the federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Celsius’s stock been significantly oversold to PepsiCo (NASDAQ:), Inc. (“Pepsi”) well beyond demand, and faced a looming sales cliff during which Pepsi would significantly reduce its purchases of Celsius products; (2) as Pepsi reduced significant amounts of its excess inventory, Celsius’s sales would decline significantly in future periods, which would harm Celsius’s financial performance and prospects; (3) Celsius’ sales rate to Pepsi was unsustainable and created a misleading impression about Celsius’ financial performance and prospects; (4) as a result, Celsius’ business metrics and financial outlook were not as strong as indicated in Defendants’ representations during the Class Period; and (5) therefore, Defendants’ statements regarding Celsius’ prospects and expected financial performance were false and misleading at all relevant times.
On May 27, 2024, Celsius’ stock price fell nearly 13% as analysts and investors digested some of the latest retail trends reported by Nielsen.
Then, on September 4, 2024, the defendants revealed, among other things, that Celsius’ sales to Pepsi had been reduced by “approximately [$]100 million to [$]120 million. . . what [Pepsi] ordered last quarter”, that Celsius was “still seeing these inventory levels decline” and that they had “increased” in the third quarter of 2024, and that “just to be specific with the [$]100 million to [$]Figure of 120 million. . . we see approximately [$]100 million to [$]120 million fewer orders for Pepsi in the third quarter of this year compared to the third quarter of last year. » On this news, the Celsius share price rose by more than 11%.
Finally, on November 6, 2024, Celsius revealed that overall Celsius revenue for the third quarter of 2024 “was approximately $265.7 million, compared to $384.8 million for the third quarter of 2023, a drop of 31%; Celsius’ North American revenue fell 33%; and his “‘[r]evening of [Pepsi] decreased by $123.9 million,” while “[c]Currently, promotional allocations from associated retailers have created revenue headwinds.[g]Ross’ profit margin was 46.0%. . . , a decrease of 440 basis points compared to 50.4% for the same period in 2023”; and that “the decrease in gross profit was due to promotional allowances, incentives and other chargebacks as a percentage of gross revenue” resulting from Pepsi’s withdrawal. In this news, the Celsius stock price fell another 5%.
The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class, who is adequate and typical of the class members directing and overseeing the litigation on behalf of the putative class. Any putative class member may move to the court to serve as lead plaintiff through an attorney of their choice, or may choose to do nothing and remain an absent class member. Your ability to participate in any recovery is not affected by whether you serve as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information about Celsius’ conduct to contact the company, including whistleblowers, former employees, shareholders and others.
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