Lawsuit Jan 21st DEADLINE Alert: Investors in Celsius Holdings, Inc. (NASDAQ: CELH) should contact the Shareholders Foundation

An investor, who purchased shares of Celsius Holdings, Inc. (NASDAQ: CELH), filed a lawsuit over alleged violations of Federal Securities Laws by Celsius Holdings, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Celsius Holdings, Inc. (NASDAQ: CELH) have certain options and for certain investors are short and strict deadlines running. Deadline: January 21, 2025. NASDAQ: CELH investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Boca Raton, FL based Celsius Holdings, Inc. develops, processes, markets, distributes, and sells functional energy drinks and liquid supplements in the United States, Australia, New Zealand, Canadian, European, Middle Eastern, Asia-Pacific, and internationally.

On May 27, 2024, Morgan Stanley reported that weekly retail data showed Celsius Holdings, Inc with slowed sales growth and cautioned that the Company faced difficult sales comparisons over the next several quarters as it rolled over the anniversary of its Distribution Agreement with Pepsi.

Then, on September 4, 2024 Celsius Holdings, Inc revealed, among other things, that Celsius Holdings' 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."

Finally, on November 6, 2024, Celsius Holdings, Inc disclosed that its 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%.

Shares of Celsius Holdings, Inc. (NASDAQ: CELH) declined from $98.85 per share on May 22, 2024, to as low as $25.50 per share on November 15, 2024.

The plaintiff claims that between February 29, 2024 and September 4, 2024, the defendants made false and/or misleading statements and/or failed to disclose that 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, that as Pepsi drew down significant amounts of inventory overstock, Celsius Holdings' sales would materially decline in future periods, hurting Celsius Holdings' financial performance and outlook, that Celsius Holdings' sales rate to Pepsi was unsustainable and created a misleading impression of Celsius Holdings' financial performance and outlook, that as a result, Celsius' business metrics and financial prospects were not as strong as indicated in defendants' statements between February 29, 2024 and September 4, 2024, and that consequently, defendants' statements regarding Celsius' outlook and expected financial performance were false and misleading at all relevant times.

Those who purchased shares of Celsius Holdings, Inc. (NASDAQ: CELH) have certain options and should contact the Shareholders Foundation.

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 lawsuits, 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.