#United States #New York #Class Action #Celsius Holdings #Pomerantz Law

Celsius Holdings Faces Class Action Lawsuit

Recent Developments

In a significant turn of events, Pomerantz LLP has initiated a class action lawsuit against Celsius Holdings, Inc. (NASDAQ: CELH). This legal action has been prompted by assertions that the company and its executives may have engaged in securities fraud and assorted unlawful business practices, leading to considerable financial losses for shareholders.

Background of the Lawsuit

Shareholders who incurred losses are urged to act before the deadline of January 21, 2025, to be considered for Lead Plaintiff status in this class action. Interested parties can reach out to Danielle Peyton at Pomerantz for more information or to express their interest in joining the lawsuit. It’s critical for affected investors to provide their contact details and share purchase information to facilitate their application.

Financial Implications

The lawsuit comes on the heels of troubling financial disclosures made by Celsius. On May 27, 2024, Celsius experienced a nearly 13% drop in stock value after reports from Nielsen indicated a slowdown in retail sales for the company. After recording a year-over-year growth of 50% in early May, Celsius’ sales growth dipped to 39%. This downturn raised eyebrows about the company’s future market performance, especially amid fierce competition and shifting consumer trends.

In a disturbing announcement on September 4, 2024, Celsius revealed a substantial reduction in sales orders from Pepsi. Analysts noted that the anticipated sales from Pepsi had plummeted significantly, estimating approximately $100-$120 million less in orders compared to the previous year. Following this news, Celsius’s stock value took another hit, plummeting by over 11% in one day.

The company's most recent quarterly report on November 6, 2024, painted a grim picture: a staggering 31% decrease in overall revenue compared to the same period in 2023, with North American revenues dropping by nearly a third. The revenue slide coincided with steep declines in promotions and allowances linked to retailer incentives, further complicating the company's financial landscape.

The Impact on Shareholders

For shareholders, the ramifications of these announcements are dire. The combination of falling stock prices and disappointing revenue reports triggers questions about management decisions and the company’s overall strategy moving forward. The potential for securities fraud underscores the need for investors to remain vigilant about their investments and to seek legal recourse if they feel misled.

Pomerantz Law Firm's Role

Pomerantz LLP, with a reputation for its extensive experience in corporate, securities, and antitrust class litigation, is at the forefront of this unfolding case. The firm, renowned for its advocacy and success in obtaining significant settlements for defrauded shareholders, encourages affected investors to join this class action. Founded over 85 years ago, Pomerantz operates on a principle of fighting for the rights of investors and holding corporations accountable for misconduct.

Conclusion

As developments unfold regarding this class action lawsuit against Celsius Holdings, affected shareholders have the opportunity to remedy their losses through potential legal action. With upcoming deadlines, timely engagement with legal counsel could prove crucial for those impacted by the alleged financial mismanagement within Celsius.

Further details can be accessed on the Pomerantz Law Firm’s official website, where shareholders can also download copies of the legal complaints related to this case. Investors are encouraged to stay informed and proactive as they navigate these challenging financial waters.