New York – (business wire)–Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, has filed a class action lawsuit against Olaplex Holdings, Inc. (“Olaplex” or the “Company”) (NASDAQ: OLPX). Remind investors of what has been raised. United States District Court for the District of Central California (“Class Period”) on behalf of all persons and entities who purchased or acquired Olaplex securities pursuant to Olaplex’s September 30, 2021 IPO (inclusive). Investors must apply to the court by January 17, 2023 and be named as the lead plaintiff in the action.
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Olaplex was founded in 2014 and is headquartered in Santa Barbara, California. Olaplex manufactures and sells hair care products. The Company provides hair care shampoos and conditioners for the treatment, maintenance and protection of hair. Olaplex claims to join the “prestige segment” of the hair care market, which it claims is “expected to be the fastest growing segment of the global hair care market from 2020 to 2025.”
On August 27, 2021, Olaplex filed a registration statement on Form S-1 with the SEC in connection with its IPO. It was declared effective by the SEC on September 29, 2021, after several amendments (the “Registration Statement”).
On October 1, 2021, Olaplex filed a prospectus with the SEC on Form 424B4 in connection with its IPO. This prospectus incorporates and forms part of the Registration Statement (collectively, the “Offer Documents”).
Pursuant to the IPO, Olaplex issued 73,700,000 shares of its common stock to the public at an offering price of $21.00 per share, which, after deducting applicable underwriting discounts and fees, provided the company with approximately $1,466,445,750 in earnings.
The Offering Documents were negligently prepared and as a result contain false statements of material fact or contain other statements of fact necessary to avoid making misleading statements. It was omitted and was not made in accordance with the rules and regulations governing its creation. Specifically, the offering documents made false and/or misleading statements and/or did not disclose: (ii) we were therefore unlikely to be able to maintain our sales and earnings momentum; (iii) as a result, it is unlikely that the Company will be able to achieve the financial and operational growth anticipated in the Offering Document; (iv) as a result, the Offering Documents were materially false and/or misleading and did not contain information that should have been contained therein;
On Sept. 29, 2022, Piper Sandler analysts downgraded Olaplex from overweight to neutral, saying her research found that “competition and misinformation pose an increased risk to the company.” said. Additionally, the analyst said investments in marketing and education are needed to offset headwinds, and “given the risks, there is little room for valuations to move up,” she said. she said.
The news caused Olaplex’s stock price to drop $1.33 per share, or 12.15%, to close at $9.62 per share on September 29, 2022.
On October 18, 2022, Olaplex issued a press release announcing that it had “revised its earnings forecast for fiscal 2022.” Olaplex now expects revenue for fiscal 2022 of $704 million to $711 million, down significantly from its previous guidance range of $796 million to $826 million. It says it does. Olaplex said:[t]The company’s updated guidance primarily reflects weaker sales momentum due to macroeconomic pressures, increased competitive activity, including discounting, slower new customer acquisitions, and rebalancing of inventory among certain customers. doing. These are the same macroeconomic pressures. ”
The news caused Olaplex’s stock price to drop $5.55 per share, or 56.69%, to close at $4.24 per share on October 19, 2022.
At the time this complaint was filed, the price of Olaplex’s common stock remained below its offering price of $21.00 per share, hurting investors.
Plaintiffs and other class members have suffered significant losses and damages as a result of defendants’ wrongful acts and omissions and the precipitous decline in the market value of Olaplex’s securities.
If you have purchased or acquired Olaplex stock and suffered a loss, are a long-term shareholder, have information, would like to know more about these claims, or regarding your rights or interests with respect to this announcement or these matters. If you have any questions, please contact Brandon Walker or Melissa Fortunato by email (firstname.lastname@example.org), by phone ((212) 355-4648), or by completing this contact form. There are no costs or obligations on you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individuals and institutional investors in commercial, securities, derivative and other complex litigation in state and federal courts nationwide. For more information about the company, please visit www.bespc.com. Advertisement for lawyers. Previous results are no guarantee of similar results.