e.l.f. Beauty, Inc. (NYSE: ELF)

This lawsuit is for anyone who acquired securities in e.l.f. Beauty, Inc. (NYSE: ELF) from May 25, 2023 through February 6, 2025.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by telling investors that the Company was growing when the Company knew that it was not growing and then by intentionally overstating revenue to hide that the Company was growing as stated.

On August 9, 2024, investors began to learn the truth about the slowing consumer demand for ELF products when the Company released its fiscal Q1 20241 results and provided its outlook for fiscal Q2 2024. Specifically, ELF issued meaningfully weaker-than-anticipated guidance for fiscal Q2 2024 and acknowledged downward pressure on its adjusted EBITDA guidance, approximately $30 million lower than expected by analysts, signaling a sequential slowdown in growth. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on November 20, 2024, Muddy Waters Research published a report alleging, among other things, that Elf had “materially overstated revenue over the past three quarters,” and that, in the second quarter of 2024, the Company “began reporting inflated revenue and profits” as well as inventory “to account for cash that has not really come in.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on February 6, 2025, ELF released its fiscal Q3 2024 results and reduced its financial outlook for the first time since the onset of the COVID-19 pandemic.  Specifically, ELF lowered its revenue and adjusted EBITDA guidance for fiscal 2025.  Management explained that these downward revisions reflected lower demand trends, challenging category conditions, and slower-than-expected new product performance. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in e.l.f. Beauty, Inc. (NYSE: ELF) from May 25, 2023 through February 6, 2025 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.