NEW YORK, Nov. 18, 2022 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the Central District of California on behalf of purchasers of the securities of Olaplex Holdings, Inc. OLPX pursuant and/or traceable to the Company's initial public offering conducted on September 30, 2021 (the "IPO").
According to the Complaint, defendants 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 adverse developments 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 well below the IPO price of $21.00 per share, damaging investors.
Investors who purchased or otherwise acquired shares of Torrid should contact the Firm prior to the January 17, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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