A lawsuit was filed on behalf of investors in Olaplex Holdings, Inc. (NASDAQ: OLPX) shares over alleged securities laws violations
An investor, who purchased shares of Olaplex Holdings, Inc. (NASDAQ: OLPX), filed a lawsuit over alleged violations of Federal Securities Laws by Olaplex Holdings, Inc. in connection with Company’s initial public offering conducted on or around September 30, 2021 (the “IPO” or “Offering”).
Investors who purchased shares of Olaplex Holdings, Inc. (NASDAQ: OLPX) have certain options and for certain investors are short and strict deadlines running. Deadline: January 17, 2023. NASDAQ: OLPX investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
Santa Barbara, CA based Olaplex Holdings, Inc. manufactures and sells hair care products. The Company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair. Olaplex purports to participate in the “prestige segment” of the haircare market, which the Company claims is “expected to be the fastest growing segment of the global haircare market from 2020 to 2025.”
On August 27, 2021, Olaplex Holdings, Inc. filed a registration statement on Form S-1 with the SEC in connection with the IPO, which, after several amendments, was declared effective by the SEC on September 29, 2021 (the “Registration Statement”).
On October 1, 2021, Olaplex Holdings, Inc. filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (collectively, the “Offering Documents”).
Pursuant to the IPO, Olaplex Holdings, Inc. issued 73,700,000 shares of its common stock to the public at the Offering price of $21.00 per share for approximate proceeds of $1,466,445,750 to the Company, after applicable underwriting discounts and commissions.
Olaplex Holdings, Inc. reported that its annual Total Revenue rose from $282.25 million in 2020 to $598.36 million in 2021, and that its Net Income rose from $39.27 million in 2020 to $220.78 million in 2021.
On September 29, 2022, a Piper Sandler analyst downgraded Olaplex Holdings, Inc. to Neutral from Overweight, stating that her work revealed that “competition and misinformation pose growing risks to the company.” In addition, the analyst indicated that she anticipated investments in marketing and education were needed to offset the headwinds and that “little room for valuation upside given the risks at play.”
On October October 18, 2022, Olaplex Holdings, Inc. issued a press release in which “the Company revised its guidance for the 2022 fiscal year”. Olaplex Holdings, Inc. said it now expects fiscal year 2022 revenue between $704 million and $711 million, significantly down from its prior guidance range of $796 million to $826M. Olaplex Holdings, Inc. stated that “[t]he Company’s updated guidance primarily reflects a slowdown in sales momentum that it attributes to macro-economic pressures, increased competitive activity including discounting, and a moderation in new customer acquisition, as well as inventory rebalancing across certain customers which the Company believes are in response to these same macro-economic pressures.”
Shares of Olaplex Holdings, Inc. (NASDAQ: OLPX) declined to as low as $3.80 per share on October 24, 2022.
The plaintiff claims that the Offering Documents made false and/or misleading statements and/or failed to disclose that macro-economic pressures and competition in the haircare market were more robust than the Company had represented to investors, that accordingly, the Company was unlikely to maintain its sales and revenue momentum, that as a result, it was unlikely that the Company would be able to achieve the financial and operational growth projected in the Offering Documents, and that as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein.
Those who purchased shares of Olaplex Holdings, Inc. (NASDAQ: OLPX) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North
San Diego, CA 92108
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
This release was published on openPR.