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Celsius Holdings Investors Face Class Action News

In the wake of significant stock price drops, the national law firm Faruqi & Faruqi, LLP, is actively calling on Celsius Holdings investors to consider joining a pending class action lawsuit. With a deadline of January 21, 2025, for potential lead plaintiffs to come forward, affected investors are encouraged to make their voices heard.

The firm is investigating claims related to Celsius Holdings, Inc. (NASDAQ: CELH), which have raised concerns regarding false disclosures and misleading statements made by company executives. Between February 29, 2024, and September 4, 2024, investors who believe they incurred losses exceeding $75,000 may find grounds for legal recourse.

The Lawsuit's Context

Celsius Holdings is facing scrutiny over allegations that it oversold inventory to PepsiCo, Inc. far beyond its actual demand. The company’s recurring financial information was unveiled as misleading, leading to a collection of negative stock assessments.

Here are the main allegations:
1. Overselling Inventory: Celsius reportedly sold inventory to Pepsi far beyond what was necessary, creating an unsustainable business model.
2. Sales Decline: Forthcoming reductions in orders and alleviation of inventory levels indicated that future sales would drastically drop, impacting financial forecasts.
3. Misleading Financial Indicators: Statements made by Celsius’s representatives painted an overly optimistic picture of financial health that later proved unfounded as the company's metrics were reevaluated.
4. Price Reactions: Stock prices plummeted significantly following disclosures about budget cuts and lower-than-expected sales. This culminated in a nearly 13% drop in stock price on May 27, 2024, and a further 11% drop following revelations on September 4, 2024. Ultimately, an announcement in November highlighted a staggering 31% decrease in quarterly revenue compared to the previous year.

The Role of the Lead Plaintiff

A lead plaintiff in a class action plays a critical role, representing the interests of all class members. This position is open to investors who have felt significant impacts due to the alleged misrepresentations by Celsius. Individuals interested in stepping forward must either do so by contacting their legal counsel or can remain uninvolved while benefiting from any success in the case.

Faruqi & Faruqi aims to secure justice for harmed shareholders and offers guidance and support to those seeking to understand their rights in this legal matter. Investors are strongly advised to act swiftly as the deadline approaches.

Contact Information

For additional queries or to discuss potential claims, investors can contact Josh Wilson, a partner at Faruqi & Faruqi, via phone at 877-247-4292 or 212-983-9330 (Ext. 1310). Investors with relevant information or experiences related to Celsius are also encouraged to reach out.

For valuable resources regarding the ongoing class action or for further updates, visit:
www.faruqilaw.com/CELH

This legal notice serves as an important reminder that the pathway to reclaiming losses begins with timely action. Investors must remain vigilant and proactive during this crucial process, ensuring their rights are safeguarded amid a complex financial landscape.