NEW YORK, Nov. 29, 2022 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Olaplex Holdings, Inc. (NASDAQ: OLPX), a company that manufactures and sells hair care products. A class action complaint has been filed on behalf of investors that purchased or otherwise acquired Olaplex common stock pursuant and/or traceable to the Company’s September 30, 2021 initial public offering (“IPO”).
If you purchased or otherwise acquired Olaplex common stock and would like to discuss this case and our investigation, please contact us by emailing pmayer@kaplanfox.com or by calling 646-315-9003 or our toll free number 1-800-290-1952.
If you are a member of the proposed Class, you may move the court no later than January 17, 2023 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.
On or around September 30, 2021, Olaplex conducted is IPO by issuing 73,700,000 shares of its common stock to the public at the price of $21.00 per share.
According to the complaint, on September 29, 2022, a Piper Sandler analyst downgraded Olaplex to Neutral from Overweight, stating, among other things, that her work revealed that “competition and misinformation pose growing risks to the company.”
On September 29, 2022, the price of Olaplex common stock fell $1.33 per share, or 12.15%, to close at $9.62 per share.
Then, on October 18, 2022, Olaplex issued a press release in which “the Company revised its guidance for the 2022 fiscal year . . . .” According to the complaint, 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 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.”
On this news, the price of Olaplex common stock fell $5.55 per share, or 56.69%, to close at $4.24 per share on October 19, 2022.
The complaint alleges that the Offering Documents for the IPO made false and/or misleading statements and/or failed to disclose that: (i) macro-economic pressures and competition in the haircare market were more robust than the Company had represented to investors; (ii) accordingly, the Company was unlikely to maintain its sales and revenue momentum; and (iii) 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 (iv) as a result, the Offering Documents were materially false and/or misleading and failed to state information required to be stated therein.
WHY CONTACT KAPLAN FOX - Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey. With over 50 years of experience in securities litigation, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
If you have any questions about this Notice, your rights, or your interests, please contact:
Pamela Mayer
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(646) 315-9003
E-mail: pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
