NEW YORK, Sept. 12, 2023 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP:
- Do you, or did you, own shares of Leslie’s, Inc. (NASDAQ: LESL)?
- Did you purchase your shares between February 5, 2021 and July 13, 2023, inclusive?
- Did you lose money in your investment in Leslie's, Inc.?
- Do you want to discuss your rights?
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the common stock of Leslie’s, Inc. (“Leslie’s” or the “Company”) (NASDAQ: LESL) between February 5, 2021 and July 13, 2023, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the District of Arizona and alleges violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased or acquired Leslie’s common stock, and/or would like to discuss your legal rights and options please visit Leslie’s, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
According to the Complaint, Leslie’s provides pool supplies and related equipment to end consumers, both residential and professional. Approximately 80% of the Company’s offerings are “non-discretionary” products essential to the care of pools and spas, such as chemicals, equipment, cleaning accessories, and parts. Leslie’s SEC filings specifically state that “[d]ue to the non-discretionary nature of our products and services, our business has historically delivered strong, uninterrupted growth and profitability in all market environments[.]” As a result of the Company’s “highly predictable, recurring revenue model,” Leslie’s was able to sustain 59 consecutive years of sales growth since its inception in 1963.
Plaintiff alleges that Defendants failed to disclose that: (1) the Company’s growth was caused by customers over-purchasing products to stockpile in case of a chemical shortage; (2) such sales inflated revenues and earnings and were not indicative of durable and sustainable demand or financial growth; (3) the Company took advantage of chemical shortages by urging customers to stock up on the products because Leslie’s could not “guarantee availability” of chemicals in the future; and (4) any slowdown in sales was not a normalization of past seasonality, but was due to the prior excess stockpiling.
On July 13, 2023, the Company pre-released preliminary results for the third quarter of 2023. Specifically, Leslie’s revealed that sales in the third quarter of 2023 had declined by 12%, the Company’s earnings per share for the quarter was 42% below analysts’ estimates, and adjusted earnings before interest, taxes, depreciation, and amortization was now between $124 to $128 million – well below the prior forecast of $197 million. Additionally, after reaffirming its fiscal 2023 guidance the previous two quarters, Leslie’s slashed its financial outlook by up to 60% for the remainder of the year. In addition, as part of this pre-release and the sudden drop in guidance, Leslie’s announced that its Chief Financial Officer Steven M. Weddell would be stepping down from his post effective August 7, 2023.
On this news, Leslie’s common stock fell $2.82 per share, or approximately 29.6%, to close at $6.70 per share on July 14, 2023.
If you wish to serve as lead plaintiff, you must move the Court no later than November 7, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired Leslie’s common stock, and/or would like to discuss your legal rights and options please visit Leslie’s, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.
ATTORNEY ADVERTISING. © 2023 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
