Celsius Holdings Faces Securities Class Action Over Alleged Misleading Statements to Investors

A securities class action lawsuit has been filed against Celsius Holdings, Inc. (NASDAQ: CELH), alleging that the company made false and misleading statements to investors between February 29, 2024, and September 4, 2024. The law firm of Kessler Topaz Meltzer & Check, LLP is informing investors of the lawsuit and the upcoming lead plaintiff deadline of January 21, 2025. The lawsuit alleges that Celsius materially oversold inventory to Pepsi, creating a misleading impression of the company's financial performance and outlook. According to the complaint, Celsius faced a looming sales decline as Pepsi was expected to significantly reduce its purchases of Celsius products due to the excess inventory.

Specifically, the defendants are accused of failing to disclose that Celsius had oversold inventory to Pepsi far beyond demand, that future sales would decline as Pepsi reduced its purchases to draw down inventory, that the sales rate to Pepsi was unsustainable, that Celsius' business metrics and financial prospects were not as strong as indicated in the company's statements during the class period, and that statements regarding Celsius' outlook and expected financial performance were false and misleading. This case highlights the importance of accurate financial reporting and transparency in public companies. Investors rely on company statements to make informed decisions, and allegations of misleading information can have significant consequences for both the company and its shareholders.

The lead plaintiff process allows investors who have suffered losses to potentially take a leadership role in the litigation. The lead plaintiff is typically the investor or group of investors with the largest financial stake in the outcome of the case. They are responsible for directing the litigation and selecting counsel to represent the class. Investors who purchased or acquired Celsius common stock during the specified period are encouraged to learn more about their legal rights and options. The lawsuit seeks to recover damages on behalf of affected investors who may have suffered losses as a result of the alleged misconduct.

This case serves as a reminder of the ongoing scrutiny faced by public companies and the potential legal consequences of providing inaccurate or misleading information to investors. It also underscores the importance of robust internal controls and accurate financial reporting practices in maintaining investor confidence and complying with securities laws. As the case progresses, it will be closely watched by investors, industry analysts, and legal experts for its potential implications on corporate accountability and investor protection in the securities market. The outcome could have broader implications for how companies manage inventory, report sales, and communicate with investors about their financial performance and outlook.