NEW YORK, Dec. 01, 2022 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action has been filed in the United States District Court for the Central District of California on behalf of shareholders of Olaplex Holdings, Inc. (NASDAQ:OLPX) who purchased common stock pursuant and/or traceable to Olaplex's initial public offering conducted on or around September 30, 2021 (the "IPO").
All investors who purchased the shares and incurred losses are advised to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action or join the case on our website, www.whafh.com.
If you have incurred losses, you may, no later than January 17, 2023, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
PLEASE CLICK HERE TO JOIN THE CASE
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, the IPO's offering documents made false and/or misleading statements and/or failed to disclosure that:
- macroeconomic pressures and competition in the haircare market were more robust than Olaplex had represented to investors;
- accordingly, Olaplex was unlikely to maintain its sales and revenue momentum; and
- 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.
On this news, Olaplex's stock price fell by more than 12%, closing at $9.62 per share.
Then, on October 18, 2022, Olaplex revised its guidance for the 2022 fiscal year. Specifically, Olaplex said it expected 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%, to close at $4.24 per share.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, donovan@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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