Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Northern District of California on behalf of shareholders of e.l.f. Beauty, Inc. who purchased shares between November 1, 2023 and November 19, 2024.
ELF and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On November 20, 2024, Muddy Waters Research reported that the Company had materially overstated revenue over the past three quarters; that in Q2 FY24, it realized its growth narrative was in trouble as its inventory built; that it then began reporting inflated revenue and profits resulting in its reported inventory also appearing materially inflated; and that the Company concealed its inventory challenges from investors by falsely attributing its rising inventory levels to supposed changes in its sourcing practices rather than the true cause insufficient sales.
On this news, the price of ELF’s shares fell $2.71 per share, or 2.23%, to close at $119.00 per share on November 20, 2024.
On February 6, 2025, the Company released its fiscal Q3 2025 results and provided fiscal 2025 outlook that confirmed the weaknesses identified in the report previously issued by Muddy Waters, including softer consumption trends and slower new product launches. On this news, Elf’s stock price fell $17.36 per share, or 19.62%, to close at $71.13 per share on February 7, 2025.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until May 5, 2025 to request that the court appoint them lead plaintiff.