Celsius Holdings Faces Class Action: Investors urged to Lead in Lawsuit for Major Financial Losses

Celsius Holdings Class Action Alert: Opportunities for Investors

In recent news, the law firm Robbins Geller Rudman & Dowd LLP has announced a significant opportunity for investors who suffered considerable losses in Celsius Holdings, Inc. (NASDAQ: CELH). Those who purchased Celsius common stock during the Class Period from February 29, 2024, to September 4, 2024, have the chance to become lead plaintiffs in a class action lawsuit scheduled to be filed in the Southern District of Florida.

Background on Celsius Holdings

Celsius Holdings is known for its innovative energy drinks and liquid supplements. However, allegations against the company point to troubling financial practices involving overstated sales figures and inventory strategies. Reports suggest that Celsius overstated its sales to one of its major partners, PepsiCo, by selling far beyond the actual demand for its products. This situation led to a critical reassessment of their financial outlook as major orders from Pepsi declined significantly.

Class Action Details

The class action lawsuit has been initiated under the caption Shelby Township Police & Fire Retirement System v. Celsius Holdings, Inc., and it accuses Celsius and several of its top executives of violating the Securities Exchange Act of 1934. The lawsuit asserts that the executives made misleading statements about the company's profitability and growth prospects, which ultimately led to shareholders incurring substantial losses.

Key allegations include:
1. Overselling Inventory: Celsius allegedly oversold its inventory to Pepsi, leading to a massive overstock situation that subsequently impacted sales negatively.
2. Misleading Sales Data: Throughout the Class Period, the defendants purportedly failed to disclose that the sales rate to Pepsi was unsustainable, presenting an incorrect view of the company's financial health.
3. Stock Price Collapse: Following news about declining sales and profit margins, Celsius's stock price plummeted, shedding over 13% in May 2024 and an additional 11% in September 2024.
4. Revenue Decline: The company also reported a staggering 31% drop in revenues for Q3 2024 compared to the previous year, raising alarm among investors.

Investors' Next Steps

Investors who believe they have been significantly impacted by these developments are encouraged to consider becoming lead plaintiffs in the class action. The lead plaintiff is generally the investor with the most substantial financial stake in the losses who also can effectively represent the class. Interested investors must provide their details to Robbins Geller by January 21, 2025.

The law firm has extensive experience handling investor class actions and has secured significant relief for clients in the past. Given their successful track record, potential lead plaintiffs can feel confident in selecting Robbins Geller to handle their case.

Conclusion

The Celsius Holdings situation underlines the crucial importance of transparency and accurate reporting in the financial market. As the class action progresses, investors are urged to remain vigilant and proactive in seeking justice for the financial repercussions they have endured.

For further information and to submit your details, please visit Robbins Geller’s dedicated class action page or contact the law firm directly at 800-449-4900.

Stay informed and be prepared to take action as this situation develops.