| COMPANY |
Celsius Holdings, Inc. |
| COURT |
United States District Court for the Southern District of Florida |
| CASE NUMBER |
24-cv-81472 |
| JUDGE |
The Hon. Robin Lee Rosenberg |
| CLASS PERIOD |
February 29, 2024 through September 4, 2024 |
| SECURITY TYPE |
Purchased stock or sold puts |
Case Background:
The Class Period begins on February 29, 2024. On that day, before trading opened, Celsius issued an earnings release announcing its financial results for the fourth quarter ended December 31, 2023 (“4Q23”) and full year 2023. Specifically, Celsius highlighted record 4Q23 revenue, driven predominantly by North American revenue, which increased 97% to $333 million, up from $169 million the prior year. Celsius indicated that “North American revenue was driven by expansion in total distribution points and higher SKUs per location” and reported large increases in gross profit. Likewise, Celsius reported that gross profit as a percentage of revenue was 47.8% for 4Q23, up from 44.4% for the prior year fourth quarter, and attributed its 340 basis point improvement in gross profit margin to “efficiencies in raw material sourcing, product waste reduction, and benefits from improved leverage across promotional allowances.”
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; (4) as a result, Celsius’ business metrics and financial prospects were not as strong as indicated in Defendants’ Class Period statements; and (5) consequently, Defendants’ statements regarding Celsius’ outlook and expected financial performance were false and misleading at all relevant times.
Current Status of Case:
On March 3, 2025, the Court appointed Lead Plaintiff. This action is ongoing.