A securities class action has been filed in the USDC — N.D.CA. against e.l.f. Beauty, Inc. (ELF) (“Elf” or the “Company”), on behalf of all persons or entities who purchased or otherwise acquired Elf securities between November 1, 2023, and November 19, 2024, both dates inclusive (the “Class Period”).
Elf, together with its subsidiaries, provides cosmetic and skin care products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare brand names. The Company employs an “omni-channel distribution strategy” and sells its products with retailers in the U.S., as well as internationally. Elf also sells its products online through its own direct ecommerce channels, as well as through other e-commerce websites. According to the Company’s “value proposition,” “[e]ach of [its] brands has accessible pricing relative to its competitive set and furthers [the Company’s] mission of making the best of beauty accessible to every eye, lip, face and skin concern. As an example, e.l.f. Cosmetics’ average product price point is approximately $6, as compared to other leading mass cosmetics brands which have average product price points over $9 and prestige cosmetics brands which have average product price points over $20, according to Nielsen.”.
The Complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:
(1) contrary to its representations to investors, the Company was experiencing rising inventory levels as a consequence of flagging sales;
(2) Elf falsely attributed the rising inventory levels to, among other things, changes in its sourcing practices;
(3) to maintain investor confidence, Elf reported inflated revenue, profits, and inventory over several quarters;
(4) accordingly. the Company’s business and/or financial prospects were overstated;
(5) all of the foregoing, once revealed, would likely have a material negative impact on the Company; and
(6) as a result, the Company’s public statements were materially false and misleading at all relevant times, thereby harming investors.
As a result of Muddy Waters Research (“Muddy Waters”) report, Elf’s stock price fell $2.71 per share, or 2.23%, to close at $119.00 per share on November 20, 2024.
If you purchased Elf 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”.