#USA #Robbins Geller #San Diego #Class Action #Celsius Holdings

Celsius Holdings Under Investor Fire: Class Action Lawsuit Initiated

In a recent development, Celsius Holdings, Inc. (NASDAQ: CELH) investors are being given the chance to lead a class action lawsuit against the company following substantial losses incurred between February 29, 2024, and September 4, 2024. This lawsuit is spearheaded by the esteemed law firm Robbins Geller Rudman & Dowd LLP and is entitled Shelby Township Police & Fire Retirement System v. Celsius Holdings, Inc., currently filed in the Southern District of Florida.

Background of the Case

The allegations in this class action lawsuit are serious. Celsius Holdings, renowned for its energy drinks and liquid supplements, is accused of misleading its investors through false or misleading statements. Notably, the lawsuit claims that the company oversold its inventory to PepsiCo, which significantly outstripped actual consumer demand. As a result, Celsius faced a critical sales cliff that would adversely affect its financial performance and projections moving forward. The suit indicates that crucial information about inventory overstock and the sustainability of sales to Pepsi were never disclosed to investors, leading to misguided confidence in the company's market outlook.

Key Allegations

Throughout the class period, Celsius is said to have provided a distorted view of its financial health, failing to disclose the reality of its overselling practices and the impacts they would have in the near future. As the lawsuit unfolds, it highlights several key points:

1. Overstated Sales Forecast: Celsius allegedly projected sales figures that did not account for rapidly diminishing orders from Pepsi.
2. Market Misrepresentation: The lawsuit claims that defendants misled investors about the company’s operational metrics and future financing capabilities.
3. Dramatic Stock Value Drops: Following announcements related to declining sales and profit margins, Celsius’ stock price has suffered significant declines, prompting investor outrage and calls for accountability.
4. Failure to Disclose Risks: Celsius is accused of neglecting to alert investors to the risks associated with their aggressive sales strategies and their repercussions for future earnings.

On May 27, 2024, reports indicated a drop in Celsius’ stock by nearly 13% after unsettling retail trends surfaced. Subsequently, when the actual figures regarding sales to Pepsi were disclosed on September 4, the stock price plummeted by an additional 11%. The disclosure of a staggering 31% revenue decline in the third quarter of 2024 only added fuel to the fire, exacerbating investor losses.

The Role of Lead Plaintiff

The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Celsius common stock during this period to become the lead plaintiff in the ongoing lawsuit. The lead plaintiff will represent the entire class, directing the course of the legal proceedings. It's important to note that even if an investor does not wish to assume this role, their ability to benefit from any potential settlement in the class action is unaffected.

About Robbins Geller

Robbins Geller, the law firm at the forefront of this class action, is renowned for its success in securities fraud cases. The firm has secured billions in monetary relief for investors and has been recognized as one of the leading plaintiffs' firms globally. Their track record underscores their capability and determination to pursue justice for individuals affected by corporate misconduct.

Conclusion

Celsius Holdings stands at a crucial juncture as the implications of this lawsuit become clearer. Investors looking to recover losses may find this class action to be a pivotal opportunity. For those individuals wishing to lead the charge, their window to step forward as a lead plaintiff is open until January 21, 2025. As this case unfolds, all eyes will be on both Celsius and Robbins Geller to see how these allegations develop in the courtroom.

For further details and consultation, interested parties can visit Robbins Geller's website or reach out directly at 800-449-4900.