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Published December 20, 2024
Celsius Holdings, Inc. gave investors the wrong sort of buzz after executives revealed sales were down over $100 million. Stunned investors emptied out their shares, causing Celsius’ stock price to plummet almost 12%. Angry investors are now suing the company to recover their losses.
Celsius, a popular energy drink brand, formed a distribution alliance with Pepsi 2022. The company then reported record sales in 2023, causing its stock price to skyrocket. Celsius’ executives then cashed out, banking well over $1 billion, but didn’t tell investors that the record sales were because Pepsi had hoarded over two years’ worth of Celsius in warehouses. Thus, 2023 sales weren’t likely to repeat any time soon.
The truth emerged in September 2024, when a Celsius executive spoke at an industry conference. He said sales were down almost $100 million because Pepsi was using its massive stockpile to stock shelves instead of ordering new cans.
Stunned investors quickly dumped their shares, causing Celsius’ stock price to crash. Some of those investors are now signing up for the lawsuit.