Lawsuit filed for Investors in Casper Sleep Inc. (NYSE: CSPR) over alleged Securities Laws Violations

An investor, who purchased shares of Casper Sleep Inc. (NYSE: CSPR), filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Casper Sleep Inc. in connection with certain allegedly false and misleading statements made in connection with the Company’s initial public offering conducted on or about February 7, 2020 (the “IPO” or “Offering”).

Investors who purchased shares of Casper Sleep Inc. (NYSE: CSPR) have certain options and for certain investors are short and strict deadlines running. Deadline: August 18, 2020. NYSE: CSPR investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

New York based Casper Sleep Inc. provides sleep products to consumers in the United States, Canada, and Europe. On February 7, 2020, shares of Casper Sleep Inc dropped 18% on their second day of trading as a public company, falling below its initial public offering issue price of $12. Since then NYSE: CSPR shares declined to as low as $3.15 per share in March 2020.

The New York Financial Times reported that, "The share price drop gives the company a market capitalization of $437m and comes after Casper had reduced its value in the lead-up to the IPO."

According to the complaint the plaintiff alleges on behalf of purchasers of Casper Sleep Inc. (NYSE: CSPR) common shares, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that the Offering Documents made false and/or misleading statements and/or failed to disclose that Casper’s profit margins were actually declining, rather than growing, that Casper was changing an important distribution partner, costing it 130 basis points of gross margin in the first quarter of 2020 alone, that Casper was holding a glut of old and outdated mattress inventory that it was selling at steeply discounted clearance prices, further impairing the Company’s profitability, that Casper was suffering accelerating losses, further placing its ability to achieve positive cash flows and profitability out of reach, that Casper’s core operations were not profitable, but were causing the Company to suffer over $40 million in negative cash flows during the first quarter of 2020 alone and doubling its quarterly net loss year over year, that as a result of the foregoing, Casper’s ability to achieve profitability, implement its growth initiatives, and expand internationally had been misrepresented in the Offering Documents, as the Company needed to shutter its European operations, halt all international expansion, jettison over one fifth of its global corporate workforce, and significantly curtail new store openings in order to avoid an imminent cash and liquidity crisis, let alone achieve positive operating cash flows, and that as a result of the foregoing, Casper’s revenue growth rate was not sustainable and had not positioned the Company to achieve profitability.

Those who purchased shares of Casper Sleep Inc. (NYSE: CSPR) have certain options and should contact the Shareholders Foundation.

Media Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.