The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Olaplex Holdings, Inc. (OLPX)
The Law Offices of Frank R. Cruz reminds investors of the upcoming January 17, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Olaplex Holdings, Inc. ("Olaplex" or the "Company") (NASDAQ: OLPX) common stock pursuant and/or traceable to the Company's September 2021 initial public offering (the "IPO").
If you are a shareholder who suffered a loss, click here to participate.
In September 2021 Olaplex conducted its IPO, selling 73.7 million shares of common stock at $21.00 per share.
On September 29, 2022, Piper Sandler downgraded the stock to Neutral based on work showing that "competition and misinformation pose growing risks to the company." On this news, Olaplex's stock price fell $1.33, or 12.2%, to close at $9.62 per share on September 29, 2022, thereby injuring investors.
Then, on October 18, 2022, Olaplex reduced its financial outlook for fiscal 2022, expecting net sales between $704 million and $711 million. The Company attributed the revised guidance to "a slowdown in sales momentum that it attributes to macro-economic pressures, increased competitive activity including discounting, and a moderation in new customer acquisition." Additionally, Olaplex announced that its Chief Operating Officer was stepping down from her post.
On this news, Olaplex's stock price fell $5.55, or 56.7%, to close at $4.24 per share on October 19, 2022, significantly below the IPO price.
The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) macroeconomic pressures and competition in the haircare market were more robust than the Company had represented to investors; (2) accordingly, the Company was unlikely to maintain its sales and revenue momentum; and (3) 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 (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased or otherwise acquired Olaplex common stock pursuant and/or traceable to the IPO, you may move the Court no later than January 17, 2023 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230113005070/en/
SOURCE: The Law Offices of Frank R. Cruz
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz, 310-914-5007 fcruz@frankcruzlaw.com www.frankcruzlaw.com
COMTEX_422606922/1006/2023-01-13T10:00:00