(NewMediaWire) - December 16, 2024 - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Celsius Holdings, Inc. (“Celsius” or the “Company”) (NASDAQ: CELH) on behalf of investors that purchased or otherwise acquired Celsius securities between February 29, 2024 and September 4, 2024 (the “Class Period”).If you are an investor in Celsius and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing pmayer@kaplanfox.com or by calling (646) 315-9003.
According to the complaint, on August 1, 2022, Celsius entered into a long-term distribution agreement through which PepsiCo, Inc. (“Pepsi”) would become the primary distributor of Celsius products in the United States.
On February 29, 2024, the start of the Class Period, Celsius reported its financial results for the fourth quarter and full-year 2023, including “Record full-year revenue of $1,318 million up 102% from $654 million in full-year 2022.”
On September 4, 2024, the end of the Class Period, during a Company presentation at a Barclays conference, Celsius disclosed $100 million to $120 million less in orders from Pepsi in the third quarter of 2023 compared to the third quarter of the prior year. Additionally, according to the complaint, Celsius disclosed that Pepsi was holding excess supply of “several million more cases over the past 1.5 years than they really needed to hold,” meaning that Celsius’ sales to Pepsi far outstripped market demand and that Pepsi was drawing down excess inventory from its warehouses.
The complaint alleges, among other things, that throughout the Class Period, the Defendants made false and misleading statements and/or failed to disclose that (i) the Company materially oversold inventory to PepsiCo, Inc. (“Pepsi”) far in excess of demand, and faced a looming sales cliff during which Pepsi would significantly reduce its purchases of Celsius products, (ii) as Pepsi drew down significant amounts of inventory overstock, Celsius’ sales would materially decline in future periods, hurting the Company’s financial performance and outlook, and (iii) Celsius’ sales rate to Pepsi was unsustainable and created a misleading impression of Celsius’ financial performance and outlook the Company’s outlook and expected financial performance were false and misleading at all relevant times.
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If you have any questions about this Notice, your rights, or your interests, please contact:
CONTACT:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
lking@kaplanfox.com
