ETFOptimize | High-performance ETF-based Investment Strategies

Quantitative strategies, Wall Street-caliber research, and insightful market analysis since 1998.


ETFOptimize | HOME
Close Window

ELF Stockholders: Robbins LLP Reminds Investors that a Class Action was Filed Against e.l.f. Beauty, Inc.

SAN DIEGO, March 10, 2025 (GLOBE NEWSWIRE) -- Robbins LLP reminds stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired e.l.f. Beauty, Inc. (NYSE: ELF) securities between November 1, 2023 and November 19, 2024. e.l.f., together with its subsidiaries, provides cosmetic and skin care products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare brand names.

For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.

The Allegations: Robbins LLP is Investigating Allegations that e.l.f. Beauty, Inc. (ELF) Misled Investors and Overstated its Profits

According to the complaint, during the class period, defendants failed to disclose to investors that: (i) the Company was experiencing rising inventory levels as a consequence of flagging sales; (ii) e.l.f. falsely attributed the rising inventory levels to, among other things, changes in its sourcing practices; (iii) to maintain investor confidence, e.l.f. reported inflated revenue, profits, and inventory over several quarters; (iv) accordingly, the Company’s business and/or financial prospects were overstated; and therefore (v) the foregoing, once revealed, would likely have a material negative impact on the Company.

On November 20, 2024, Muddy Waters Research published a report entitled “e.l.f. Beauty, Inc. A Revenue and Inventory Mystery”, alleging that e.l.f. had “materially overstated revenue over the past three quarters,” and that in “Q2 FY24, ELF management realized its growth narrative was in trouble as its inventory built. It appears that ELF then began reporting inflated revenue and profits. Its reported inventory also appears materially inflated as a result - i.e., to account for cash that has not really come in.” Further, Muddy Waters 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, e.l.f.’s stock price fell $2.71 per share, or 2.23%, to close at $119.00 per share on November 20, 2024. e.l.f.'s stock has continued to decline. On March 5, 2025, e.l.f.'s stock closed at $64.67 per share, representing a decline of $57.04 per share – or nearly 47% - since the truth was revealed.

What Now: You may be eligible to participate in the class action against e.l.f. Beauty, Inc. Shareholders who want to serve as lead plaintiff for the class must file their papers with the court by May 5, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.  

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.

To be notified if a class action against e.l.f. Beauty, Inc. or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

Attorney Advertising. Past results do not guarantee a similar outcome.

Contact:
Aaron Dumas, Jr.
Robbins LLP
5060 Shoreham Pl., Ste. 300
San Diego, CA 92122
adumas@robbinsllp.com
(800) 350-6003
www.robbinsllp.com

https://www.facebook.com/RobbinsLLP/
https://www.linkedin.com/company/robbins-llp/

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5d7dcb12-5011-4b37-854b-7007aa098b2e


Primary Logo

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.


 

IntelligentValue Home
Close Window

DISCLAIMER

All content herein is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor should it be interpreted as a recommendation to buy, hold or sell (short or otherwise) any security.  All opinions, analyses, and information included herein are based on sources believed to be reliable, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. We undertake no obligation to update such opinions, analysis or information. You should independently verify all information contained on this website. Some information is based on analysis of past performance or hypothetical performance results, which have inherent limitations. We make no representation that any particular equity or strategy will or is likely to achieve profits or losses similar to those shown. Shareholders, employees, writers, contractors, and affiliates associated with ETFOptimize.com may have ownership positions in the securities that are mentioned. If you are not sure if ETFs, algorithmic investing, or a particular investment is right for you, you are urged to consult with a Registered Investment Advisor (RIA). Neither this website nor anyone associated with producing its content are Registered Investment Advisors, and no attempt is made herein to substitute for personalized, professional investment advice. Neither ETFOptimize.com, Global Alpha Investments, Inc., nor its employees, service providers, associates, or affiliates are responsible for any investment losses you may incur as a result of using the information provided herein. Remember that past investment returns may not be indicative of future returns.

Copyright © 1998-2017 ETFOptimize.com, a publication of Optimized Investments, Inc. All rights reserved.