The law firm of Kirby McInerney LLP reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired e.l.f. Beauty, Inc. (“ELF” or the “Company”) (NYSE: ELF) securities during the period from May 25, 2023, through February 6, 2025 (“the Class Period”). Investors have until May 5, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.

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On November 20, 2024, Muddy Waters Research published a report titled e.l.f Beauty, Inc. A Revenue and Inventory Mystery, alleging that ELF had materially overstated revenue over the past three quarters. The report claimed that in Q2 FY24, when ELF management realized its growth narrative was in trouble as its inventory built, ELF began reporting inflated revenue and profits. Furthermore, the report accused the Company of concealing its inventory challenges from investors by falsely attributing its rising inventory levels to supposed changes in its sourcing practices rather than the true cause – insufficient sales. On this news, the price of ELF shares declined by $2.71 per share, from $121.71 per share on November 19, 2024, to close at $119.00 on November 20, 2024.

The complaint alleges that defendants, throughout the Class Period, failed to disclose that: (1) contrary to its representations to investors, the Company was experiencing rising inventory levels as a consequence of flagging sales; (2) ELF falsely attributed the rising inventory levels to, among other things, changes in its sourcing practices; and (3) to maintain investor confidence, ELF reported inflated revenue, profits, and inventory over several quarters.

If you purchased or otherwise acquired ELF securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the form below, to discuss your rights or interests with respect to these matters without any cost to you.

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Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.

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