Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $75,000 In Celsius To Contact Him Directly To Discuss Their Options

If you suffered losses exceeding $75,000 in Celsius between February 29, 2024 and September 4, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

[You may also click here for additional information]

NEW YORK, Dec. 13, 2024 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Celsius Holdings, Inc. (“Celsius” or the “Company”) (NASDAQ: CELH) and reminds investors of the January 21, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Celsius 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; (2) as Pepsi drew down significant amounts of inventory overstock, Celsius’ sales would materially decline in future periods, hurting Celsius’ financial performance and outlook; (3) Celsius’ sales rate to Pepsi was unsustainable and created a misleading impression of Celsius’ financial performance and outlook; (4) as a result, Celsius’ business metrics and financial prospects were not as strong as indicated in defendants’ Class Period statements; and (5) consequently, defendants’ statements regarding Celsius’ outlook and expected financial performance were false and misleading at all relevant times.

On May 27, 2024, the price of Celsius stock fell nearly 13% as analysts and investors digested some of the latest retail store trends reported by Nielsen.

Then, on September 4, 2024, defendants revealed, among other things, that Celsius’ sales to Pepsi were reduced from “roughly around [$]100 million to [$]120 million . . . from what [Pepsi] ordered last quarter,” that Celsius was “still seeing these inventory levels being reduced” and that it had “increased” in the third quarter of 2024, and that “just to be precise with the [$]100 million to [$]120 million figure, . . . we’re seeing approximately [$]100 million to [$]120 million less in orders to Pepsi in Q3 this year versus Q3 last year.” On this news, the price of Celsius stock more than 11%.

Finally, on November 6, 2024, Celsius disclosed that Celsius’ overall third quarter of 2024 “revenue was approximately $265.7 million, compared to $384.8 million for the” third quarter of 2023, a 31% decline; Celsius’ North American revenues fell 33%; and its “‘[r]evenue from [Pepsi] declined $123.9 million,’” while “[c]oncurrently, related retailer promotional allowances created revenue headwinds.” Celsius further revealed that that its quarterly “gross profit decreased by $71.9 million, or 37%”; that its quarterly “[g]ross profit margin was 46.0% . . . , a 440 basis point decrease from 50.4% for the same period in 2023”; and that the “decrease in gross profit was due to promotional allowances, incentives, and other billbacks as a percentage of gross revenue” resulting from Pepsi’s drawdown. On this news, the price of Celsius stock fell an additional 5%.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.  

Faruqi & Faruqi, LLP also encourages anyone with information Celsius’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the Celsius Holdings, Inc. class action, go to www.faruqilaw.com/CELH or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

Follow us for updates on LinkedIn, on X, or on Facebook.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/fc26f750-62fc-4fb1-a124-860425e3f446