Kirby McInerney LLP Urges Investors in e.l.f. Beauty, Inc. (ELF) to Inquire About Their Rights in Class Action Lawsuit

Core Viewpoint - A class action lawsuit has been filed against e.l.f. Beauty, Inc. for allegedly overstating revenue and concealing inventory challenges during the specified class period [1][3][4]. Group 1: Lawsuit Details - The lawsuit is filed in the U.S. District Court for the Northern District of California on behalf of investors who acquired ELF securities from May 25, 2023, to February 6, 2025 [1]. - Investors have until May 5, 2025, to apply to be appointed as lead plaintiff in the lawsuit [1]. Group 2: Allegations Against the Company - Muddy Waters Research published a report alleging that ELF materially overstated revenue over the past three quarters, particularly in Q2 FY24, when management recognized issues with growth and inventory [3]. - The report claims that ELF falsely attributed rising inventory levels to changes in sourcing practices rather than insufficient sales, leading to inflated revenue and profits reported to investors [3][4]. - The complaint alleges that ELF failed to disclose rising inventory levels due to declining sales and misrepresented the reasons for inventory increases [4]. Group 3: Market Reaction - Following the publication of the report by Muddy Waters Research, ELF shares declined by $2.71, from$121.71 on November 19, 2024, to $119.00 on November 20, 2024 [3].