PHILADELPHIA, PA / ACCESSWIRE / November 29, 2022 / Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Olaplex Holdings, Inc. ("Olaplex") (NASDAQ:OLPX) on behalf of those who purchased common stock issued in connection with Olaplex's September 2021 initial public offering (the "IPO").
Investor Deadline: Investors who purchased or acquired Olaplex common stock may, no later than January 17, 2023, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (215) 875-3093, or Andrew Abramowitz at [email protected] or (215) 875-3015 or visit: https://investigations.bergermontague.com/olaplex-holdings-inc/
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 participates in the "prestige segment" of the haircare market, which it 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 a 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 a 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 Olaplex, after applicable underwriting discounts and commissions.
At the time the complaint was filed the price of Olaplex common stock was trading below $6.00 per share, well below the Offering price of $21.00 per share.
The complaint alleges that the Offering Documents made false and/or misleading statements and/or failed to disclose that: (i) macro-economic 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; (iii) as a result, it was unlikely that Olaplex 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.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
James Maro, Senior Counsel
Andrew Abramowitz, Senior Counsel
SOURCE: Berger Montague