e.l.f.(US:ELF) Prnewswireยท2025-03-21 15:05Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against e.l.f. Beauty, Inc. due to allegations of misleading financial statements and inflated revenue, with a class action lawsuit deadline set for May 5, 2025 [2][4]. Group 1: Allegations Against e.l.f. Beauty - The complaint alleges that e.l.f. Beauty and its executives violated federal securities laws by making false and misleading statements regarding rising inventory levels and sales performance [4]. - It is claimed that e.l.f. Beauty falsely attributed rising inventory levels to changes in sourcing practices rather than declining sales [4]. - The Muddy Waters Report accused e.l.f. Beauty of materially overstating revenue and profits over several quarters, indicating that the company concealed inventory challenges from investors [4]. Group 2: Financial Performance and Outlook - On February 6, 2025, e.l.f. Beauty revised its fiscal 2025 net sales growth forecast to 27%-28%, down from 28%-30%, and adjusted its EBITDA guidance to $289-293 million, down from $304-308 million [5]. - The company also anticipated net sales growth to be between -1% to +2%, citing softer consumption trends and slower-than-expected new product performance as reasons for the revision [5]. Group 3: Legal Proceedings and Investor Actions - Investors who suffered losses exceeding $50,000 in e.l.f. Beauty between November 1, 2023, and November 19, 2024, are encouraged to contact Faruqi & Faruqi to discuss their legal options [1]. - The lead plaintiff in the class action will be the investor with the largest financial interest who is typical of class members, overseeing the litigation on behalf of the class [5].