A securities class action has been filed in the USDC — S.D.FL. against Celsius Holdings, Inc. (CELA) (“Celsius” or the “Company”), on behalf of all those that purchased or otherwise acquired Celsius securities between February 29, 2024 and September 4, 2024, both dates inclusive (the “Class Period”).
Through its operating subsidiaries, the Company offers various products in the functional energy drink category in the United States and internationally. The Company’s flagship asset is CELSIUS, a no-sugar fitness drink or supplement the Company states is designed (with exercise) to accelerate metabolism and burn body fat while providing energy. CELSIUS comes in a ready-to-drink form and a powdered form, as well as various flavors and carbonated and noncarbonated options under the CELSIUS Originals and Vibe names. In 2023, the Company introduced a new CELSIUS Essentials line, which contains essential amino acids and is available in 16-ounce cans. The Company distributes its products through direct-to-store delivery, distributors, supermarkets, convenience stores, drug stores, nutritional stores, and mass merchants, as well as health clubs, gyms, the military, and e-commerce websites.
The complaint alleges that throughout the Class Period defendants made false and/or misleading statements and/or failed 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, thereby harming investors.
If you purchased Celsius securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information.”
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.