NEW YORK - March 12, 2025 (NEWMEDIAWIRE) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against e.l.f. Beauty, Inc. (“ELF” or the “Company”) (NYSE: ELF) on behalf of investors that purchased or otherwise acquired ELF securities between November 1, 2023 and November 19, 2024 (the “Class Period”).
If you are an investor in ELF and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing jcampisi@kaplanfox.com or by calling (212) 329-8571.
DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than May 5, 2025 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.
According to the complaint, on November 20, 2024 Muddy Waters Research published a report (“the Report”) alleging ELF had “materially overstated revenue over the past three quarters” by approximately $135 million to $190 million. Further, the Report alleges that “in Q2 FY24, ELF management realized its growth narrative was in trouble as its inventory built” and “ELF then began reporting inflated revenue and profits.” Additionally, the Report states that the Company’s “reported inventory also appears materially inflated as a result – i.e., to account for cash that has not really come in.”
On this news, the price of ELF stock fell $2.71 per share, or 2.23%, to close at $119 per share.
Further, according to the complaint, on November 21, 2024, ELF issued a statement categorically denying the allegations in the Report, which ELF accused of relying on incomplete data and flawed assumptions, omitting critical context, and presenting speculation as fact.
Then, on February 6, 2025, the Company reported third quarter results and full year 2025 outlook that was lowered due to “softer than expected trends in January.” ELF reported softer consumption trends that were driven by “consumers stocking up in a highly promotional December and lower social conversation around beauty” and slower than anticipated new product launches.
On this news, the price of ELF stock fell $17.36 per share, nearly 20%, to close at $71.13 on February 7, 2025.
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CONTACT:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
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New York, New York 10022
(212) 329-8571
jcampisi@kaplanfox.com
Laurence D. King*
KAPLAN FOX & KILSHEIMER LLP
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Oakland, California 94612
(415) 772-4704
lking@kaplanfox.com
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https://www.kaplanfox.com/case/e-l-f-beauty-inc/
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