e.l.f.(ELF) Prnewswire·2025-03-09 22:37Core Viewpoint - A class action lawsuit has been filed against e.l.f. Beauty, Inc. for allegedly misleading investors and overstating profits during a specified period [1][2]. Group 1: Allegations and Findings - The lawsuit claims that e.l.f. failed to disclose rising inventory levels due to declining sales, falsely attributing these levels to changes in sourcing practices [2][3]. - It is alleged that e.l.f. reported inflated revenue, profits, and inventory over several quarters to maintain investor confidence, leading to an overstatement of the company's financial prospects [2][3]. - Muddy Waters Research published a report accusing e.l.f. of materially overstating revenue and profits, indicating that the company concealed inventory challenges from investors [3]. Group 2: Stock Performance - Following the allegations, e.l.f.'s stock price fell by 119.00 on November 20, 2024 [4]. - As of March 5, 2025, e.l.f.'s stock had declined to 57.04 per share, or nearly 47% since the truth was revealed [4]. Group 3: Legal Proceedings - Shareholders interested in participating in the class action must file their papers by May 5, 2025, to serve as lead plaintiffs [5]. - The representation in the lawsuit is on a contingency fee basis, meaning shareholders will not incur fees or expenses [6].