Faruqi & Faruqi Investigates Celsius Holdings for Securities Fraud Claims

Investigation into Celsius Holdings by Faruqi & Faruqi

Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently investigating potential claims on behalf of investors regarding Celsius Holdings, Inc. (NASDAQ: CELH). The firm is particularly focused on investors who experienced losses exceeding $75,000 between February 29, 2024, and September 4, 2024. With a deadline of January 21, 2025, approaching for filing as a lead plaintiff in a federal securities class action, affected investors are encouraged to reach out directly to Faruqi & Faruqi partner, Josh Wilson, for more information regarding their rights and possible reparations.

The investigation stems from allegations that Celsius and its executives may have breached federal securities laws by issuing false or misleading statements related to their financial performance and business operations. The firm is meticulously reviewing claims that Celsius significantly oversold its inventory to PepsiCo, Inc., leading to an inflated perception of the company's sales dynamics. The allegations include claims that:

1. Celsius sold far more inventory to Pepsi than it could viably sustain, leading to an impending drop in sales as Pepsi reduced orders.
2. The projection of robust sales growth was misleading and painted an inaccurate picture of the company's financial health.
3. Investors were not adequately informed about how these unsustainable sales would impact Celsius' future performance.

The troubling news for investors began to unfold when, on May 27, 2024, the price of Celsius stock fell nearly 13%. Analysts pointed to declining retail store trends as a contributing factor. Then, on September 4, 2024, Celsius revealed that its orders from Pepsi had dropped sharply, confirming fears that the business model was not sustainable in the long run. This selling activity led Celsius stocks to drop an additional 11% as investors reacted to the bleak news.

Further exacerbating the situation, on November 6, 2024, Celsius disclosed a staggering 31% decline in third-quarter revenue compared to the previous year, from $384.8 million to approximately $265.7 million. North American revenues sank 33%, and revenue derived from Pepsi saw a significant decrease of $123.9 million. Such revelations were alarming, suggesting serious implications for the business moving forward. Analysts began to assess the reasons behind the dip in margins, attributing much of it to variable costs rising amidst promotional allowances and decreased orders from Pepsi.

In light of these developments, Faruqi & Faruqi is calling on any investors affected by Celsius' actions to monitor the proceedings closely. The role of lead plaintiff will be filled by the investor with the greatest financial loss who can adequately represent the interests of the class. For those potentially involved, it’s essential to understand that your claims can still be active if you choose not to take on the lead role. The firm is also reaching out to potential whistleblowers, former employees, shareholders, and anyone with insights into Celsius's conduct to bolster its case.

Faruqi & Faruqi has a long-standing record of advocating for investors, having recovered hundreds of millions of dollars since its inception in 1995. As investigations continue, investors can learn more about their rights and the ongoing proceedings at the firm’s website or by directly contacting their offices. This case serves as a timely reminder of the complexities and risks associated with investments in publicly traded companies and the critical need for transparency from those at the helm.

For more information regarding the Celsius Holdings, Inc. class action, interested parties can visit Faruqi & Faruqi’s class action page or contact the firm directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Pursuing this case could foster a significant change in corporate governance and accountability for Celsius Holdings and its stakeholders.