Celsius(US:CELH) GlobeNewswire News Room·2024-12-03 15:23Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Celsius Holdings, Inc. due to allegations of misleading statements regarding its financial performance and inventory management, particularly concerning sales to PepsiCo [2][4]. Group 1: Legal Investigation and Class Action - The law firm is encouraging investors who suffered losses exceeding $75,000 in Celsius between February 29, 2024, and September 4, 2024, to discuss their legal options [1]. - There is a deadline of January 21, 2025, for investors to seek the role of lead plaintiff in a federal securities class action against Celsius [2]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [3]. Group 2: Allegations Against Celsius - The complaint alleges that Celsius oversold inventory to Pepsi far beyond demand, leading to a significant sales decline as Pepsi reduced its purchases [4]. - It is claimed that Celsius' sales rate to Pepsi was unsustainable, creating a misleading impression of the company's financial health [4]. - The allegations suggest that Celsius' business metrics and financial prospects were not as strong as previously indicated, leading to false and misleading statements about its outlook [4]. Group 3: Financial Performance and Stock Impact - On May 27, 2024, Celsius stock fell nearly 13% following negative retail trends reported by Nielsen [5]. - On September 4, 2024, Celsius revealed a reduction in sales to Pepsi from approximately $100 million to $120 million compared to the previous quarter, causing the stock to drop over 11% [5][6]. - For the third quarter of 2024, Celsius reported revenue of approximately $265.7 million, a 31% decline from $384.8 million in the same period of 2023, with North American revenues falling 33% [7]. - The revenue from Pepsi declined by $123.9 million, and gross profit decreased by $71.9 million, or 37%, leading to an additional 5% drop in stock price [7].