Celsius Holdings, Inc. (CELH) Securities Class Action

The complaint alleges that throughout the Class Period, Defendants misrepresented and concealed material adverse facts about Celsius’ outlook and expected financial performance, particularly as they pertained to its largest customer/distributor (PepsiCo or “Pepsi”).

Specifically, Defendants failed to disclose to investors that: (1) Celsius materially oversold inventory to Pepsi far in excess of demand, and faced a looming sales cliff during which Pepsi would significantly reduce its purchases of Celsius products; (2) as Pepsi drew down significant amounts of inventory overstock, Celsius’ sales would materially decline in future periods, hurting the company’s financial performance and future outlook; (3) Celsius’ sales rate to Pepsi was unsustainable and created a misleading impression of Celsius’ financial performance and future outlook; and (4) as a result, Celsius’ business metrics and financial prospects were not as strong as indicated in Defendants’ Class Period statements.

The truth began to emerge on May 28, 2024, when the price of Celsius shares dropped almost 13% as analysts digested some of the latest retail store trends reported by Nielsen. According to the complaint, analysts noted that Celsius’ sales growth slowed from the prior year period and sequentially warned that sales could be dramatically diminished as Pepsi reduced the amount of Celsius inventory it held.

Then, on Sept. 4, 2024, the price of Celsius shares dropped over 11%, after a Celsius investor presentation, during which Celsius revealed that it was seeing approximately $100 million to $120 million less in Pepsi orders compared to the prior year quarter and said Pepsi was holding several million more cases over the past 1 ½ years than it really needed to hold.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the CELH investigation about?

We are focused on whether Celsius may have misled investors about the sustainability of its sales rates to Pepsi.

WHAT SHOULD I DO?

I worked at CELH. What should I do?

If you were an employee of CELH, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in CELH, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any CELH investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.