#United States #New York #Celsius Holdings #Faruqi & Faruqi #Josh Wilson

Legal Investigation into Celsius Holdings

In a significant development, Faruqi & Faruqi, LLP, a prominent national securities law firm, has initiated an investigation into potential claims against Celsius Holdings, Inc. This investigation comes as a response to reports detailing losses sustained by investors exceeding $75,000 during a specified period from February 29, 2024, to September 4, 2024. The urgency of this discovery is underscored by the ongoing legal proceedings involving Celsius, with a critical deadline looming for investors seeking to act as lead plaintiffs in a federal securities class action against the company. This class action aims to hold Celsius accountable for allegedly misleading disclosures that have impacted the market value of its stocks.

Faruqi & Faruqi has stated that any investors affected should immediately reach out to their offices for guidance. Partner Josh Wilson emphasized that investors who believe they have been wronged have legal rights and the firm is ready to assist them in exploring their options. Celsius Holdings operates in a competitive beverage market and has been closely tied to its contracts with major corporations like PepsiCo. The severity of the claims against the company highlights potential discrepancies in sales reporting and business practices.

Allegations Against Celsius Holdings

The allegations highlight that Celsius may have materially oversold inventory to Pepsi far beyond actual demand. This overcommitment has apparently led to a drastic reduction in orders, as noted in statements made by company executives in recent months. Furthermore, numerous indicators suggest that Celsius's sales and financial performance don't align with the optimistic outlook they presented to investors. The investigation is focused on the following key points:

1. Inventory Overselling: Claims indicate that Celsius has mismanaged its inventory levels, leading to excessive sales claims to significant partners like PepsiCo.
2. Sales Decline: As forecasts have been trimmed, investor confidence has waned, reflected in Celsius's stock price which saw a decline of nearly 11% following reports of reduced orders from Pepsi.
3. Misleading Financial Statements: There's growing concern over whether Celsius's financial statements accurately reflect its business health, especially in light of recent sales trends.

Relevant Timeline of Events

• - May 27, 2024: A stock price drop of nearly 13% followed the revelation of disappointing retail trends, prompting investors to reevaluate their stake in Celsius.
• - September 4, 2024: Executives disclosed revised sales figures to Pepsi, which had dropped significantly from previous estimates, contributing to more investor anxiety and further decline in stock prices.
• - November 6, 2024: Celsius released a troubling third-quarter earnings report, indicating a 31% drop in overall revenue compared to last year, igniting further concerns over its financial viability.

This unfolding situation sheds light on the volatility and risks inherent in investing in fast-moving consumer goods companies, especially those relying heavily on key partnerships. The broader implications for investors and the market could be substantial, particularly if investigations confirm that misleading practices were pursued by Celsius’s executives.

Next Steps for Investors

Affected investors are urged to reach out to Faruqi & Faruqi's team, as they assess the viability of potential claims surrounding this matter. It’s vital for anyone feeling the impact of these events to engage with legal resources that might aid in recovery efforts. Lead plaintiff appointments will direct how the class action is managed and shape the course of the legal process moving forward.

As the situation develops, placing confidence in legal counseling through firms like Faruqi & Faruqi may prove essential for investors navigating potential losses incurred during this tumultuous period. Those with insights or evidence regarding Celsius’s operations are further encouraged to come forward, as their testimonies might strengthen the claims against the company. Investors can reach Faruqi & Faruqi by visiting their website or through direct inquiry to partner Josh Wilson for personalized assistance.