Celsius Holdings Faces Class Action Avenue as Investors Seek Legal Recourse for Losses

Legal Alert: Celsius Holdings Faces Class Action Lawsuit

Faruqi & Faruqi, LLP, a prominent national securities law firm, has recently highlighted a crucial opportunity for investors affected by losses in Celsius Holdings, Inc. The firm is reminding stakeholders that the deadline to apply for lead plaintiff status in the pending class action lawsuit is approaching on January 21, 2025. This notification is particularly vital for investors who faced financial setbacks exceeding $75,000 during the period from February 29, 2024, to September 4, 2024.

Background on the Lawsuit

The class action lawsuit against Celsius Holdings has emerged due to allegations that the company and its executives violated federal securities laws. The allegations primarily focus on misleading statements made about Celsius's financial health, particularly regarding its sales relationship with PepsiCo, Inc. The complaint claims that Celsius excessively oversold inventory to Pepsi, leading to an unsustainable sales model that misrepresented the company's actual financial performance.

The lawsuit's implications became evident when, on May 27, 2024, Celsius’s stock saw a dramatic decline of nearly 13%. This drop was attributed to negative insights from retail store trends reported by Nielsen, which prompted investors to reevaluate their positions. The situation escalated further on September 4, 2024, when it was revealed that sales to Pepsi would plummet from projected figures, leading to an overt acknowledgment of diminished orders and overall revenue decline.

In the following months, Celsius reported a staggering 31% decline in third-quarter revenue year-over-year, which had a cascading effect on its stock value. By November 6, 2024, the company disclosed a significant reduction in gross profits alongside other troubling financial indicators—further amplifying investor concerns.

Importance of Lead Plaintiff Status

The role of a lead plaintiff is crucial in a class action lawsuit. The lead plaintiff represents the interests of all class members, guiding the course of litigation and decisions made. Interested investors can approach the court through their legal counsel to potentially serve in this capacity. However, it's important to note that participation as a lead plaintiff does not alter the recovery rights of absent class members.

Faruqi & Faruqi encourages any Celsius investor with information regarding the allegations or the company’s conduct to step forward, which could include whistleblowers, former employees, and shareholders. The firm emphasizes the importance of collective legal actions in holding companies accountable for wrongdoing and ensuring that investors are fairly compensated.

Invitation to Discuss Legal Options

Investors who believe they may qualify for this class action or have suffered significant losses due to the alleged misleading practices of Celsius are urged to reach out directly to Josh Wilson, a partner at Faruqi & Faruqi. Potential plaintiffs can contact him at 877-247-4292 or 212-983-9330 (Ext. 1310) for a confidential consultation.

This class action lawsuit presents a significant avenue for investors to seek restitution for their losses. As the January deadline approaches, those affected should act promptly to ensure their voices are heard in this important legal matter.

Conclusion

As legal actions unfold against Celsius Holdings, affected investors must stay informed and consider their options carefully. The leading national securities law firm, Faruqi & Faruqi, stands ready to assist those wishing to take action. Staying vigilant and proactive in these scenarios can make a significant difference in the outcome of a potential recovery.