e.l.f.(US:ELF) GlobeNewswire News Roomยท2025-04-04 00:00Core Viewpoint - A federal securities class action has been filed against e.l.f. Beauty, Inc. (ELF) for allegedly overstating revenue and concealing inventory issues during the Class Period from November 1, 2023, to November 19, 2024 [1][3][4] Group 1: Allegations and Findings - Muddy Waters Research published a report on November 20, 2024, claiming that ELF had materially overstated revenue over the past three quarters, particularly in Q2 FY24 [3] - The report indicated that ELF's management began reporting inflated revenue and profits as inventory levels rose, which were falsely attributed to changes in sourcing practices rather than declining sales [3][4] - Following the report, ELF's share price dropped by $2.71, closing at $119.00 on November 20, 2024, down from $121.71 the previous day [3] Group 2: Class Action Details - The complaint alleges that ELF failed to disclose rising inventory levels due to declining sales and instead misled investors by attributing these levels to sourcing changes [4] - ELF is accused of maintaining investor confidence by reporting inflated revenue, profits, and inventory over several quarters [4] - Investors who acquired ELF securities during the Class Period are reminded of the May 5, 2025, deadline to seek the role of lead plaintiff in the class action [1]