Olaplex Holdings, Inc.

Ticker: OLPX

Class Period Start: 09/30/2021

Class Period End: 11/17/2022

Registration Deadline: 01/17/2023

Lowey Dannenberg Notifies Olaplex Holdings, Inc. (NASDAQ: OLPX) Investors of Securities Class Action Lawsuit and Upcoming Lead Plaintiff Deadline.

Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, announced the filing of a securities class action lawsuit in the USDC – C.D.CA. against Olaplex Holdings, Inc. (“Olaplex” or the “Company”), on behalf of purchasers of Olaplex’s common stock pursuant and/or traceable to the Company’s September 30, 2021 initial public offering (the “IPO” or “Offering Documents”), for violations of the Securities Act of 1933.

On November 17, 2022, a complaint was filed against Olaplex, certain of its top executives, and directors of its September 2021 IPO, alleging that the Company failed to disclose material facts in their IPO’s Offering Documents. Specifically, the IPO’s Offering Documents failed to disclose that:

  • macroeconomic pressures and competition in the haircare market were more robust than the Company had represented to investors;
  • accordingly, the Company was unlikely to maintain its sales and revenue momentum; and
  • as a result, it was unlikely that the Company would be able to achieve the financial and operational growth projected in the Offering Documents; and
  • as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein.

On September 29, 2022, a Piper Sandler analyst downgraded Olaplex, stating that “competition and misinformation pose growing risk to the company” and indicated that she anticipated investments in marketing and education were needed to offset the headwinds and that “little room for valuation upside given the risks at play.”

On this news, Olaplex’s stock price fell $1.33 per share, or 12.15%, close at $9.62 per share on September 29, 2022, injuring investors.

Then, on October 18, 2022, Olaplex issued a press release in which “the Company revised its guidance for the 2022 fiscal year” which indicated that the Company now expected the fiscal year 2022 revenue between $704 million and $711 million, significantly down from its prior range of $796 million to $826 million. The Company stated that this “reflects a slowdown in sales momentum that it attributes to macro-economic pressures, increased competitive activity including discounting, and a moderation in new customer acquisition, as well as inventory rebalancing across certain customers which the Company believes are in response to these same macro-economic pressures.”

On this news, Olaplex’s stock price fell $5.55 per share, or 56.69%, to close at $4.24 per share on October 19, 2022.

If you suffered a loss in Olaplex’s securities, and wish to participate, or learn more, please complete the information below and/or contact our attorneys directly at: (914) 733-7234 or investigations@lowey.com.

If you suffered a loss on your investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.

An attorney will contact you at no cost to provide you information about joining the action and answer your questions. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.

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