NEW YORK, Jan. 01, 2023 (GLOBE NEWSWIRE) — Pomerantz LLP has announced that a class action lawsuit has been filed against Olaplex Holdings, Inc. (NASDAQ: OLPX) and certain officers. The class action has been filed in the United States District Court for the Central District of California and is organized under 22-cv-08395 and represents a class of all persons and entities other than defendants who have purchased or acquired Olaplex common stock. doing. pursuant to and/or traceable to our initial public offering (“IPO” or “offering”) on or about September 30, 2021 and indemnified caused by a defendant’s violation of federal securities laws; Sections 11 and 15 (“Classes”) of the Securities Act of 1933 (“Securities Act”) seeking to recover damages and seek relief.
If you are a shareholder who purchased or acquired Olaplex securities, you must ask the court to name you as the lead plaintiff in the class action by January 17, 2023. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby (newaction@pomlaw.com) or 888.476.6529 (or 888.4-POMLAW), Toll Free, Ext. , it is recommended to include the number of shares purchased.
[Click here for information about joining the class action]
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 Complaint alleges, throughout the class, that the recruitment documents were negligently prepared and as a result contained false statements of material fact or contained other factual statements necessary to ensure that the statements were not misleading. It claims that it has been omitted and was not prepared according to this document. Rules and regulations governing its preparation. 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 sent Olaplex’s stock price down $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 sent Olaplex’s stock price down $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.
With offices in New York, Chicago, Los Angeles, London, Paris and Tel Aviv, Pomerantz LLP is recognized as one of the leading law firms in the corporate, securities and antitrust class action fields. Founded by the late Abraham L. Pomerantz, known as the Chief of the Class Action Tribunal, Pomeranz is a pioneer in the field of securities class actions. Today, more than 85 years later, Pomeranz continues the tradition he established by fighting for the rights of victims of securities fraud, fiduciary breaches and corporate misconduct. The firm has recovered numerous multi-million dollar damages on behalf of members of class action lawsuits. Visit www.pomlaw.com
contact:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
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