#United States #New York #Class Action #Celsius Holdings #Pomerantz LLP

Pomerantz Law Firm Unveils Celsius Holdings Class Action Lawsuit

In a significant legal development, Pomerantz LLP has announced the filing of a class action lawsuit against Celsius Holdings, Inc., a publicly traded company on NASDAQ (stock symbol: CELH). The firm is reaching out to investors who have suffered losses due to their investments in Celsius, urging them to take action before the crucial January 21, 2025 deadline.

The Allegations Explained

The class action primarily focuses on allegations that Celsius, along with certain officers and directors, engaged in unlawful business practices and securities fraud. Details have emerged suggesting that the company may have misled investors about its performance, which has recently shown troubling signs. The lawsuit aims to hold the entities responsible accountable for the losses incurred by shareholders during a specific Class Period.

Shareholders who purchased or acquired Celsius securities during this time are encouraged to act quickly to be eligible to serve as Lead Plaintiffs in the case. Those interested can reach out to Danielle Peyton at Pomerantz LLP with comprehensive information about their investments, including their contact details and the number of shares purchased.

Declining Stock Prices Raise Concerns

Celsius's stock has faced considerable volatility, particularly following a string of unfavorable reports. For instance, on May 27, 2024, analysts observed a staggering 13% dip in Celsius's stock price. This decline was attributed to analyses by Nielsen highlighting a decline in retail performance, leading Morgan Stanley to note a 39% year-on-year sales growth, which was a stark decrease from the previously reported 50% growth.

Moreover, concerns mounted as the company's market share dwindled and product pricing fell by 7.2% year-on-year. By September, Celsius made headlines when it revealed that sales to Pepsi had diminished significantly from previous orders, with a reduction of nearly $100 million compared to the prior year’s third quarter. Following these disclosures, the company's stock further plummeted.

Financial Troubles Amplify Legal Concerns

On November 6, 2024, Celsius reported a staggering 31% drop in revenue during the third quarter of that year compared to 2023. These figures are alarming, especially as the company revealed a dramatic decline in its revenue from Pepsi, falling by $123.9 million. This financial distress has also manifested as a reduction in its gross profit, highlighting underlying issues exacerbated by promotional allowances and incentives that have contributed to decreased revenues.

With the stock trading down by more than 5% in response to these revelations, shareholders are understandably concerned about the financial health and business practices of Celsius.

The Role of Pomerantz LLP

Founded over eight decades ago by legal pioneer Abraham L. Pomerantz, Pomerantz LLP is renowned for its commitment to championing the rights of investors, particularly in cases of securities fraud and corporate misconduct. The firm has a longstanding record of successfully recovering substantial damages for class members in similar lawsuits, making it a trusted ally for those looking to recover their losses.

Shareholders affected by Celsius's recent challenges now have an opportunity to seek justice and join the class action lawsuit. By uniting under this lawsuit, shareholders aim to not only recover their losses but also send a strong message against corporate malpractice.

As the situation develops, further updates will emerge, and investors are encouraged to stay informed. Immediate action could be pivotal for those seeking to assert their rights in this significant legal battle.