Faruqi & Faruqi Takes Action for Celsius Holdings Investors Amid Revenue Declines

Investigation into Celsius Holdings' Financial Decline

Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently conducting an investigation into potential claims on behalf of investors of Celsius Holdings, Inc. This inquiry is particularly crucial for those who experienced losses exceeding $75,000 between February 29, 2024, and September 4, 2024. Investors are encouraged to reach out to Josh Wilson, a securities litigation partner at the firm, for a confidential discussion regarding their legal rights.

Celsius Holdings has been under scrutiny after allegations emerged suggesting that the company and its executives engaged in practices violating federal securities laws. The complaints assert that Celsius made misleading statements and failed to disclose critical information about its financial situation. Among the key issues raised are the company's overselling of inventory to PepsiCo, Inc., which was significantly beyond market demand, and the consequential negative impact this had on Celsius's sales performance and financial metrics.

On May 27, 2024, Celsius's stock encountered a significant downturn, plummeting nearly 13% in value as investors began to absorb new retail trends reported by Nielsen. The situation worsened by September 4, 2024, when Celsius reported that its sales to Pepsi had drastically dropped from approximately $100 million to $120 million compared to previous orders, leading to a further 11% decline in stock prices.

By November 6, 2024, the picture appeared even bleaker for Celsius, as the company disclosed a staggering 31% decline in overall revenue for the third quarter of 2024, summing up to approximately $265.7 million, down from $384.8 million in the same quarter the previous year. The specifics of the decline included a significant loss in revenue from Pepsi and a 33% drop in North American sales. In addition, Celsius revealed that their gross profit saw a notable decrease of $71.9 million, marking a 37% decline compared to the prior year.

Legal experts at Faruqi & Faruqi believe that the firm's involvement is crucial for potentially impacted investors who may be seeking restitution for their financial losses. They are currently rallying those who qualify to consider taking the lead plaintiff role in the impending class action lawsuit against Celsius. This move not only aids collective recovery efforts for aggrieved investors but also strengthens the case against Celsius Holdings as further evidence emerges.

Furthermore, Faruqi & Faruqi is reaching out to gather information from whistleblowers, former employees, and others who might have insights into Celsius's questionable business practices to strengthen their case. As the legal landscape evolves, investors are advised to stay informed of any updates regarding the litigation process.

Those interested in more details or wishing to participate are encouraged to visit the firm's dedicated webpage on Celsius Holdings or directly contact Josh Wilson for further support. In a time where investor rights and corporate accountability are paramount, Faruqi & Faruqi is committed to safeguarding the interests of those affected by these alarming developments at Celsius Holdings.