SAN DIEGO–(BUSINESS WIRE)–The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Olaplex Holdings, Inc. (NASDAQ: OLPX) common stock pursuant and/or traceable to Olaplex’s initial public offering conducted on or around September 30, 2021 (the “IPO”) have until January 17, 2023 to seek appointment as lead plaintiff of the Olaplex class action lawsuit. Captioned Lilien v. Olaplex Holdings, Inc., No. 22-cv-08395 (C.D. Cal.), the Olaplex class action lawsuit charges Olaplex as well as certain of its top executives and directors with violations of the Securities Act of 1933.
If you suffered substantial losses and wish to serve as lead plaintiff of the Olaplex class action lawsuit, please provide your information here:
CASE ALLEGATIONS: Olaplex manufactures and sells hair care products. Pursuant to its IPO, Olaplex issued more than 73 million shares of its common stock to the public at a price of $21.00 per share for approximate proceeds of more than $1.4 billion to Olaplex.
Olaplex purports to participate in the “prestige segment” of the haircare market, which Olaplex claims is “expected to be the fastest growing segment of the global haircare market from 2020 to 2025.” However, as the Olaplex class action lawsuit alleges, the IPO’s offering documents made false and/or misleading statements and/or failed to disclose that: (i) macroeconomic pressures and competition in the haircare market were more robust than Olaplex had represented to investors; (ii) accordingly, Olaplex was unlikely to maintain its sales and revenue momentum; and (iii) as a result, it was unlikely that Olaplex would be able to achieve the financial and operational growth projected in the IPO’s offering documents.
On September 29, 2022, a Piper Sandler analyst downgraded Olaplex to Neutral from Overweight, stating that her work revealed that “competition and misinformation pose growing risks to [Olaplex].” 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 this news, Olaplex’s stock price fell by more than 12%.
Then, on October 18, 2022, Olaplex revised its guidance for the 2022 fiscal year. Specifically, Olaplex 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 $826 million. Olaplex further revealed that Olaplex’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 [Olaplex] believes are in response to these same macro-economic pressures.” On this news, Olaplex’s stock price fell an additional 56.7%.
At the time of the filing of the Olaplex class action lawsuit, the price of Olaplex common stock continues to trade below the IPO price of $21.00 per share, damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Olaplex pursuant and/or traceable to the IPO to seek appointment as lead plaintiff in the Olaplex class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Olaplex class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Olaplex class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Olaplex class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world, and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
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