Celsius Holdings, Inc. Faces Class Action Lawsuit After Investment Losses Alert to Shareholders

Celsius Holdings, Inc. in Hot Water: Class Action Lawsuit Overview

On January 2, 2025, Pomerantz LLP, a prominent law firm specializing in securities litigation, announced the filing of a class action lawsuit against Celsius Holdings, Inc. (NASDAQ: CELH). Investors who have faced financial losses due to their investments in the company are encouraged to take action as the lawsuit may offer them opportunities for recovery. This announcement is part of an ongoing investigation into whether Celsius and its management may have engaged in unlawful business practices or securities fraud.

The timeline of events leading to this class action paints a concerning picture for Celsius investors. Data from Nielsen, a respected leader in analytics, indicated a troublesome slowdown in retail sales, which analysts from Morgan Stanley pointed out in late May 2024. They noted a drastic decline in Celsius’s sales growth from 50% year-over-year to 39%, reflecting diminishing market share and a significant 7.2% drop in product pricing compared to the previous year. When these figures were made public, shares of Celsius plummeted nearly 13%, highlighting investor sentiment turned sour.

Further compounding these issues, on September 4, 2024, Celsius disclosed that the volume of its orders from Pepsi, a key partner, had been reduced sharply, estimated to cut orders by approximately $100 to $120 million for the third quarter of 2024 compared to the same period in 2023. This revelation led to another significant drop in Celsius's stock price, falling by 11.59% to end at $32.39 per share following the announcement.

Celsius continued to grapple with disappointing financial disclosures, and on November 6, 2024, it announced a staggering 31% decline in revenue for the third quarter, which amounted to only $265.7 million compared to $384.8 million during the same quarter the previous year. Particularly alarming was the news that North American revenues had fallen by 33%, while revenue stemming from their partnership with Pepsi had decreased by $123.9 million. Coupled with a significant decline in gross profit, as Celsius faced increased promotional allowances and incentives, investors were left reeling.

As a result of this continuing string of negative press, Celsius's stock took yet another hit, ultimately closing at $30.04 per share. The cumulative impact of these announcements has spurred action from shareholders who may feel misled.

The class action lawsuit provides a means for shareholders to potentially regain some of their losses by joining others who experienced similar setbacks during the class period. Investors are urged to reach out to the contacting attorney, Danielle Peyton, at Pomerantz LLP, for guidance on how to participate in this class action.

As Pomerantz LLP reminds investors, the deadline to file as a Lead Plaintiff in this case is January 21, 2025. Those interested are encouraged to act quickly and gather necessary documentation regarding their purchases of Celsius securities.

The potential implications of this lawsuit extend beyond just the financial losses experienced by individual investors; it also calls into question the governance and business practices of Celsius Holdings, Inc. Pomerantz has a long history of advocating for victims of securities fraud and aims to hold companies accountable for their actions.

In summary, the unfolding events surrounding Celsius Holdings, Inc. are a stark reminder of the risks associated with investing in volatile markets. The class action lawsuit serves as a beacon for affected shareholders who seek justice and accountability in the wake of troubling revelations about the company's financial health and business practices.

For continuous updates and additional information on joining the class action, shareholders can refer to the Pomerantz Law Firm's website at www.pomerantzlaw.com, or contact Danielle Peyton directly via email or phone. Whether it's financial recovery or accountability that investors seek, this lawsuit will undeniably mark a significant chapter in the ongoing saga of Celsius Holdings, Inc.