Robbins Geller Files Class Action on Behalf of Celsius Holdings Investors Facing Losses

Celsius Holdings, Inc. Under Fire: Potential Class Action Lawsuit

In a significant development for investors of Celsius Holdings, Inc. (NASDAQ: CELH), the law firm Robbins Geller Rudman & Dowd LLP has initiated a class action lawsuit against the company. This action seems to stem from major allegations surrounding misleading statements made by the company’s executives during a time when investors experienced substantial financial losses.

Background of the Case

The class action lawsuit centers on the period between February 29, 2024, and September 4, 2024. Investors who purchased Celsius common stock during this timeframe have until January 21, 2025, to step forward as potential lead plaintiffs in the case known as Shelby Township Police & Fire Retirement System v. Celsius Holdings, Inc., No. 24-81472 (S.D. Fla.).

The lawsuit contends that Celsius, which specializes in developing and distributing energy drinks and supplements, misled investors regarding its business performance and financial outlook. As detailed in the allegations, Celsius purportedly oversold inventory to PepsiCo, Inc. much beyond the actual demand. This created an impression of a solid financial footing, which, according to the lawsuit, was far from reality.

Key Allegations

The lawsuit claims that Celsius executives intentionally made false or misleading statements, neglecting to disclose critical information that would have affected the decision-making of investors. Specifically, it was asserted that:

1. Celsius's substantial inventory shipped to Pepsi was unjustifiably high and not sustainable.
2. The company faced an impending sales drop as Pepsi would start significantly scaling back its orders.
3. The inflated sales figures portrayed a misleading image of robust business health.
4. Due to the actual decline in sales performance, Celsius's financial outlook was not as positive as claimed.

The ramifications of these statements became evident when, on May 27, 2024, Celsius's stock plummeted by nearly 13%. This happened as investors reacted to disappointing retail trends disclosed by analysts. An even sharper decline followed on September 4, 2024, when executives announced severe reductions in sales expectations, leading to another notable drop of over 11% in stock price.

In revealing their financial results, Celsius reported a staggering 31% decline in revenue for the third quarter of 2024 compared to the same period in 2023. Additionally, they noted that revenue from Pepsi dropped by $123.9 million, adding to the downward spiral of financial performance metrics that had investors already on edge.

Why You Should Act

For investors who experienced significant losses during this period, the opportunity to step forward as a lead plaintiff could be crucial. Being designated as a lead plaintiff not only allows an investor to potentially guide the class action lawsuit but also provides a voice for all who faced similar financial downturns due to the alleged fraudulent conduct of Celsius Holdings.

While you don't have to serve as a lead plaintiff to benefit from any settlements that may arise, being one can provide a unique position in influencing the direction of the case. Robbins Geller Rudman & Dowd LLP has an impressive track record in handling such class actions, having recovered billions in previous settlements for investors.

To find out more about the lawsuit or to make your voice heard, investors are encouraged to reach out to Robbins Geller’s attorneys J.C. Sanchez or Jennifer N. Caringal directly or visit their dedicated webpage regarding the Celsius class action. They remain ready to assist those who wish to take action against Celsius Holdings for the damages incurred during this unfortunate period.

Conclusion

This class action lawsuit against Celsius Holdings opens a new chapter for investors looking to claim justice for their losses. As the case develops, it is vital for investors to stay informed and consider their options. The legal landscape surrounding securities fraud can be intricate, but firms like Robbins Geller are dedicated to championing the rights of investors wronged by large corporations.

For more detailed information, interested parties can visit Robbins Geller or reach out to the firm’s representatives.