Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Jan. 10, 2025 (GLOBE NEWSWIRE) — The Portnoy Law Firm advises Celsius Holdings, Inc. (“Celsius” or the “Company”) (NASDAQ: CELH) investors of a class action representing investors that bought securities between February 29, 2024 and September 4, 2024, inclusive (the “Class Period”). Celsius investors have until January 21, 2025 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
Case Allegations: Celsius is a holding company that develops, processes, markets, distributes, and sells energy drinks and liquid supplements.
The class action lawsuit against Celsius claims that throughout the relevant period, the company made false or misleading statements and failed to disclose crucial information. Specifically, it is alleged that Celsius materially oversold inventory to PepsiCo, Inc. (“Pepsi”), significantly exceeding demand, which set the stage for a future sales decline as Pepsi was expected to sharply reduce its purchases. As Pepsi worked through this inventory overstock, Celsius’ sales were projected to drop substantially, negatively affecting the company’s financial performance and outlook. The lawsuit further claims that Celsius’ sales rate to Pepsi was unsustainable and gave a misleading impression of the company’s overall financial health and future prospects. Consequently, it is argued that Celsius’ business metrics and financial outlook were not as strong as indicated by the defendants in their public statements, making their statements about the company’s future performance false and misleading.
On May 27, 2024, Celsius’ stock price fell nearly 13% after analysts and investors reviewed recent retail store trends reported by Nielsen.
On September 4, 2024, Celsius disclosed that its sales to Pepsi had been reduced from approximately $100 million to $120 million compared to the previous quarter. The company also revealed that inventory levels were still being reduced and that orders from Pepsi in the third quarter of 2024 were down by the same amount compared to the same period the year before. This news led to a drop of more than 11% in Celsius’ stock price.
Finally, on November 6, 2024, Celsius reported a 31% drop in its third-quarter revenue for 2024, which fell to $265.7 million, compared to $384.8 million in the same period of 2023. North American revenues decreased by 33%, and revenue from Pepsi dropped by $123.9 million. Additionally, Celsius reported a 37% decline in gross profit, which fell by $71.9 million, with a gross profit margin of 46.0%, down from 50.4% in the third quarter of 2023. The company attributed this decline to promotional allowances, incentives, and other deductions tied to Pepsi’s reduction in inventory. As a result of this news, Celsius’ stock price dropped another 5%.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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