Celsius Investors Urged to Act Before January Deadline on Securities Claims Investigation

Celsius Investors Urged to Act Before January Deadline on Securities Claims Investigation



Faruqi & Faruqi, LLP, a prominent law firm specializing in securities litigation, has initiated an investigation into Celsius Holdings, Inc. amid claims of misleading statements affecting investors. This investigation emerges just as a crucial deadline approaches, necessitating immediate action by shareholders who might have sustained financial losses.

Overview of the Investigation



Celsius, known for its innovative beverage products, is facing scrutiny for allegedly overstating its sales and business metrics. According to preliminary reports, the firm oversold its inventory, leading to a significant financial impact on its stock performance and investor trust. The law firm is urging affected investors, particularly those who experienced losses exceeding $75,000 between February 29, 2024, and September 4, 2024, to contact them directly to discuss potential legal recourse.

The impending deadline of January 21, 2025, looms large for those wishing to assume the role of lead plaintiff in a class-action lawsuit against the company. Under U.S. law, this position allows one investor to lead the proceedings on behalf of all affected shareholders, guiding the case strategies and settlements.

Details of Allegations



The investigation outlines several critical allegations against Celsius Holdings, which include:
1. Excessive Inventory Claims: Celsius reportedly oversold inventory to PepsiCo, exceeding demand and creating unsustainable sales projections.
2. Misleading Financial Performance: The company's executives allegedly provided false impressions of Celsius's sales health, leading to inflated stock valuations.
3. Reduced Sales Forecasts: After a substantial drop in orders from Pepsi, Celsius had to revise its sales expectations, resulting in drastic stock price decreases and a substantial financial decline.

In late May 2024, investor confidence took a heavy hit when Celsius's stock plummeted nearly 13% following the release of retail trend indicators. Subsequent updates revealed a staggering reduction in orders from Pepsi, indicating a revenue downturn that caused the stock to fall further by over 11% after disclosures on September 4.

Financial Impact on Investors



The third-quarter results disclosed on November 6, 2024, revealed a sharp decline in Celsius's revenues, which dropped approximately 31% from the previous year. With North American revenues falling by 33%, fears of a recurring trend have heightened among investors. The investigations led by Faruqi & Faruqi emphasize the cascading effects of these financial discrepancies, reflecting ongoing struggles within the company.

The law firm believes that the implications of these allegations are significant for investor rights and remedy measures. They stress that all investors, whether actively participating as plaintiffs or remaining passive members of the class, will have access to recover any losses incurred should claims bear fruit in court proceedings.

Steps for Investors



Affected investors are encouraged to take advantage of the situation. Those who believe they have a valid claim can reach out to Faruqi & Faruqi's partner Josh Wilson. Individual investors can engage with the firm's legal team to better understand their rights and options available to them in light of the situation. Furthermore, the firm is seeking any additional information that may assist in their inquiries, calling on whistleblowers, former employees, and shareholders for support in acquiring a clearer picture of Celsius's activities.

As the deadline approaches, Faruqi & Faruqi remains optimistic about the potential recovery for investors who have suffered due to Celsius's alleged missteps. It reiterates its commitment to pursuing justice for harmed shareholders while holding corporations accountable for their actions and financial disclosures. Investors are reminded that the choice to act or not in pursuing litigation will not affect their ability to participate in any outcomes resulting from this investigation.

For more information on this class-action lawsuit and ongoing investigative efforts, investors can visit Faruqi & Faruqi's official website or contact their office directly at the numbers provided.

Topics Financial Services & Investing)

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