Kahn Swick & Foti LLC Urges E.L.F. Beauty Investors to Join Lawsuit by May 2025

Legal Alert for E.L.F. Beauty Investors

As shareholders of E.L.F. Beauty, Inc. look to secure their financial interests, Kahn Swick & Foti LLC (KSF), alongside former Louisiana Attorney General Charles C. Foti, Jr., is reaching out to remind affected investors about a critical opportunity. Investors who faced losses exceeding $100,000 while holding stocks from November 1, 2023, to November 19, 2024, should be aware that they have until May 5, 2025, to file their applications to serve as lead plaintiffs in a class action lawsuit.

The case is currently pending in the United States District Court for the Northern District of California, raising significant concerns over the company's failure to disclose pertinent information related to its financial practices. Notably, a report by Muddy Waters Research accused E.L.F. of exaggerating its revenue figures during the specified period. The report indicated that E.L.F. began inflating revenues in response to declining sales, leading to an artificially increased inventory. This disruption in reporting practices culminated in major shifts in the company’s stock value.

On November 20, 2024, a significant revelation regarding these practices resulted in the company's share price plunging by 2.23%, effectively closing at $119.00. The situation further escalated following E.L.F.'s fiscal Q3 report on February 6, 2025, where it acknowledged a lack of demand and a backlog in product launches, confirming previous allegations from Muddy Waters. Consequently, the stock price suffered a dramatic fall of 19.62%, settling at $71.13 a share the following day.

These developments are critical for current and former investors, as they not only highlight potential corporate misconduct but also pave the way for legal redress. KSF is extending an invitation to investors for consultations regarding their situation. There are no fees for this initial guidance, and investors interested in pursuing their claims can reach out directly to KSF Managing Partner Lewis Kahn via email or phone.

Next Steps for Investors

Those who wish to explore this opportunity should visit KSF’s dedicated webpage for more information or contact Kahn directly by May 5, 2025, to ensure their participation. Advocating for accountability, KSF is recognized as one of the top firms in this niche area of law, providing services to both institutional and retail investors facing losses due to corporate malfeasance.

About Kahn Swick & Foti

Established by experienced legal professionals, Kahn Swick & Foti has built a reputation as a leading boutique law firm concentrating on securities litigation. With an impressive track record, KSF has successfully represented myriad clients aiming to obtain compensation for their investment losses stemming from corporate fraud. With locations in major cities across the United States, KSF remains committed to serving the interests of those impacted by deceptive business practices. For further details on KSF and its services, please visit ksfcounsel.com.

Investors of E.L.F. Beauty are strongly encouraged to take action before the impending deadline to safeguard their rights and finances in light of these troubling allegations.