Waldencast’s (WALD) stock sinks after copping to inflating revenues- Hagens Berman
Most recently, on July 5, 2023, Waldencast announced that it would restate financial statements for the year ended December 31, 2021, and for the quarterly periods ended Mar.
SAN FRANCISCO, Nov. 07, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges Waldencast plc (NASDAQ: WALD) investors who suffered substantial losses to submit your losses now.
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Waldencast plc (NASDAQ: WALD) Investigation:
The investigation focuses on the propriety of Waldencast’s previously disclosed financial results which included those of Obagi (with whom Waldencast combined through a SPAC merger consummated on July 27, 2022).
More specifically, on May 2, 2023, Waldencast announced that it would not timely file its fiscal year ended Dec. 31, 2022 (FYE 2022) financial statements, blaming “certain accounting issues in connection with the sale of certain Obagi Cosmeceuticals LLC products for the Vietnam market.”
Then, on June 5, 2023, the company announced that it obtained a waiver of default (through June 30, 2023) from its lenders who extended approximately $217 million in term and revolving loans that would otherwise result from the company’s failure to timely deliver its FYE 2022 and Q1 2023 financial reports.
Most recently, on July 5, 2023, Waldencast announced that it would restate financial statements for the year ended December 31, 2021, and for the quarterly periods ended Mar. 31, 2022 and June 30, 2022 as a result of improper revenue recognition involving Obagi sales to its Southeast Asia distributor. Among other things, Waldencast said it “expects the revenue in connection with sales of its Obagi products for the Vietnam market during second half of fiscal year 2022 to be reduced to zero from its prior expectation of $33 million[.]”
These events have driven the price of Waldencast shares sharply lower.
“We’re focused on investors’ losses and whether Waldencast cooked its books,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Waldencast and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Waldencast investigation, read more »
Whistleblowers: Persons with non-public information regarding Waldencast should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
