NEW YORK, Dec. 06, 2024 (GLOBE NEWSWIRE) -- 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 Southern District of Florida on behalf of those who acquired Celsius Holdings, Inc. (“Celsius” or the “Company”) (NASDAQ: CELH) securities during the period of February 29, 2024, to September 4, 2024, inclusive (“the Class Period”). Investors have until January 21, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.

[Click here to learn more about the class action]

The lawsuit alleges that on May 27, 2024, the price of Celsius stock declined materially as analysts and investors digested some of the latest retail store trends reported by Nielsen, a global data and analytics company. Morgan Stanley noted that Celsius’ sales growth slowed sequentially in weekly retail data – slowing to 39% year-over-year in the week ended May 18, 2024, down from 50% in the week ended May 4, 2024. Morgan Stanley warned that Celsius faced difficult sales comparisons over the next several quarters as it rolled over the anniversary of its Distribution Agreement with PepsiCo, Inc. (“Pepsi”). Similarly, Stifel warned that sales could be dramatically diminished as Pepsi reduced the amount of Celsius inventory it held. The price of Celsius shares declined by $12.23 per share, or approximately 13%, from $95.15 on May 24, 2024, to close at $82.92 on May 28, 2024.

Then, on September 4, 2024, Celsius’ CEO, John Fieldly presented at the Barclays 17th Annual Global Consumer Staples Conference. During the conference, Fieldly discussed the Company’s Distribution Agreement with Pepsi, and revealed that Celsius’ sales to Pepsi had decreased by “roughly around $100 million to $120 million … from what Pepsi ordered last quarter.” Fieldly added Celsius was “still seeing these inventory levels being reduced.” Additionally, it was noted that Celsius’ prior sales to Pepsi far outstripped market demand for Celsius products, and Pepsi was drawing down excess inventory from its warehouses. On this news, the price of Celsius shares declined by $4.25 per share, or approximately 12%, from $36.64 on September 3, 2024, to close at $32.39 on September 4, 2024.

The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose 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 Celsius financial performance and outlook; (3) Celsius sales rate to Pepsi was unsustainable and created a misleading impression of Celsius financial performance and outlook; and (4) as a result, Celsius business metrics and financial prospects were not as strong as indicated in defendants Class Period statements.

If you purchased or otherwise acquired Celsius 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 by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.

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.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com