Sign In  |  Register  |  About Pleasanton  |  Contact Us

Pleasanton, CA
September 01, 2020 1:32pm
7-Day Forecast | Traffic
  • Search Hotels in Pleasanton

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

OLAPLEX ALERT: Bragar Eagel & Squire, P.C. is Investigating Olaplex Holdings, Inc. on Behalf of Long-Term Stockholders and Encourages Investors to Contact the Firm

Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Olaplex Holdings, Inc. (NASDAQ: OLPX) on behalf of long-term stockholders following a class action complaint that was filed against Olaplex on November 17, 2022 with a Class Period pursuant to the company’s September 30, 2021 IPO. Our investigation concerns whether the board of directors of Olaplex have breached their fiduciary duties to the company.

Olaplex was founded in 2014 and is headquartered in Santa Barbara, California. Olaplex manufactures and sells hair care products. The Company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair. Olaplex purports to participate in the “prestige segment” of the haircare market, which the Company claims is “expected to be the fastest growing segment of the global haircare market from 2020 to 2025.”

On August 27, 2021, Olaplex filed a registration statement on Form S-1 with the SEC in connection with the IPO, which, after several amendments, was declared effective by the SEC on September 29, 2021 (the “Registration Statement”).

On October 1, 2021, Olaplex filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (collectively, the “Offering Documents”).

Pursuant to the IPO, Olaplex issued 73,700,000 shares of its common stock to the public at the Offering price of $21.00 per share for approximate proceeds of $1,466,445,750 to the Company, after applicable underwriting discounts and commissions.

The Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation. Specifically, the 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 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.

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 the company.” 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 $1.33 per share, or 12.15%, to close at $9.62 per share on September 29, 2022.

Then, on October 18, 2022, Olaplex issued a press release in which “the Company revised its guidance for the 2022 fiscal year”. 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 $826M. 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, Olaplex’s stock price fell $5.55 per share, or 56.69%, to close at $4.24 per share on October 19, 2022.

As of the time this complaint was filed, the price of Olaplex common stock continues to trade below the Offering price of $21.00 per share, damaging investors.

As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of Olaplex’s securities, Plaintiff and other Class members have suffered significant losses and damages.

If you are a long-term stockholder of Olaplex, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Photography by Christophe Tomatis
Copyright © 2010-2020 Pleasanton.com & California Media Partners, LLC. All rights reserved.