#United States #Robbins Geller #San Diego #Class Action #Celsius Holdings

Celsius Holdings Under Fire: Class Action Lawsuit Filed

In a significant development for investors of Celsius Holdings, Inc. (NASDAQ: CELH), Robbins Geller Rudman & Dowd LLP has announced the filing of a class action lawsuit against the company. This action pertains to individuals who purchased common stock during the class period from February 29, 2024, to September 4, 2024. Investors who believe they have incurred substantial losses are encouraged to consider taking the role of lead plaintiff in this ongoing legal battle.

Background of the Case

The class action, officially titled Shelby Township Police & Fire Retirement System v. Celsius Holdings, Inc., alleges that throughout the specified period, Celsius made numerous misleading statements and failed to disclose critical information regarding its financial situation. Specifically, the lawsuit claims that the company oversold inventory to PepsiCo, Inc. (Pepsi) to unmatched demand, indicating serious mismanagement of its sales strategies.

The allegations highlight that Celsius faced a looming decline in profitability as Pepsi began reducing its purchases. As Pepsi worked through excessive inventory due to oversupply, Celsius was set to face a substantial drop in its sales figures. The lawsuit suggests that Celsius' upbeat statements about its financial performance painted an inaccurate picture of its actual standing, leading to misinformation among investors.

Implications of Stock Price Decline

The ramifications of these allegations became starkly apparent on several occasions, with notable drops in Celsius' stock price correlating with announcements from the company. For example, on May 27, 2024, stock prices dropped nearly 13% in reaction to disappointing retail trends. Later, on September 4, a significant clarification regarding the dramatic reduction in orders from Pepsi saw the stock price tumble by over 11%. Following these revelations, Celsius reported a staggering decline in its third-quarter revenue, which plummeted by approximately 31% compared to the previous year, substantially impacting investor confidence.

The allegations reveal a troubling narrative of income misrepresentation and mismanagement by Celsius, potentially affecting thousands of investors who expected stable returns based on the company's prior statements.

The Road Ahead for Investors

Investors seeking to participate in the class action must file their applications to be considered for the lead plaintiff position by January 21, 2025. It's important to understand that serving as a lead plaintiff allows an individual to represent all affected shareholders, guiding the direction of the case against Celsius. By this role, they can also select legal representation of their choice.

However, it's crucial for potential plaintiffs to note that their ability to recover in any future settlement does not necessitate them being the lead plaintiff.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP stands out as one of the premier law firms specializing in securities fraud litigation. With a track record of recovering substantial monetary relief for investors, including being recognized consistently as a top performer in the area, the firm brings considerable experience to the Celsius case. Historically, they have secured over $6.6 billion for investors in class action litigations, establishing their credibility and effectiveness in holding companies accountable for financial misconduct.

For more information on the class action or to submit an application for lead plaintiff, interested investors can contact Robbins Geller directly or visit their dedicated webpage. The firm continues to emphasize the importance of investor rights and transparency in financial markets.

Conclusion

The Celsius class action lawsuit not only serves as a cautionary tale for investors who may place undue trust in corporate communications but also affirms the need for robust legal recourse in the face of alleged financial improprieties. As the case unfolds, the outcomes may significantly shape the future landscape for Celsius Holdings and impact its standing in the marketplace.