ELF Investors Have the Opportunity to Lead the e.l.f. Beauty Securities Fraud Lawsuit with Faruqi & Faruqi, LLP

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against e.l.f. Beauty, Inc. due to allegations of misleading statements and inflated financial metrics, with a class action lawsuit deadline set for May 5, 2025 [3][5]. 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 inventory levels and sales performance [5]. - It is claimed that e.l.f. Beauty falsely attributed rising inventory levels to changes in sourcing practices rather than declining sales [5]. - The company reportedly inflated revenue and profits over several quarters to maintain investor confidence, which has led to overstated business prospects [5]. Group 2: Impact of Muddy Waters Report - On November 20, 2024, Muddy Waters Research published a report alleging that e.l.f. Beauty had materially overstated revenue over the past three quarters [5]. - The report indicated that management recognized issues with growth narratives as inventory levels increased, leading to inflated financial reporting [5]. Group 3: Financial Outlook and Adjustments - Following the class period, e.l.f. Beauty revised its fiscal 2025 net sales growth expectations to 27%-28%, down from 28%-30% [6]. - The adjusted EBITDA guidance was also lowered to $289-293 million from$304-308 million, influenced by updated sales outlook and a $7 million foreign currency loss [6]. - The company anticipated net sales growth to be between -1% to +2%, reflecting softer consumption trends and slower new product performance [6].