NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Leslie’s, Inc. (“Leslie’s” or the “Company”) (NASDAQ: LESL) in the United States District Court for the District of Arizona on behalf of all persons and entities who purchased or otherwise acquired Leslie’s common stock between February 5, 2021 and July 13, 2023, both dates inclusive (the “Class Period”). Investors have until November 7, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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The Class Action alleges that, during the Class Period, Defendants misled investors and/or failed to disclose that (1) the Company’s growth was caused by customers over purchasing products; (2) such sales inflated revenues and earnings and were not indicative of durable and sustainable demand or financial growth; (3) the Company prolonged the inflated customer demand by warning customers that 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, Leslie’s issued a press release announcing disappointing preliminary results for its fiscal third quarter of 2023 ended on July 1, 2023, including a 9% year-over-year sales decline and a cut to the Company’s fiscal 2023 guidance. The press release quoted Defendant Egeck, revealing that “consumers entered the pool season with a greater than normal amount of chemicals left[ ]over from last year.” In addition, the Company announced that its Chief Financial Officer would depart the following month. These revelations shocked analysts, resulting in several downgrades, with one firm concluding that “pretty much everything in the company’s preliminary earnings release was more negative than we could have anticipated.” In response to this news, the price of Leslie’s common stock declined more than 29%, from a closing price of $9.52 per share on July 13, 2023, to a closing price of $6.70 per share on July 14, 2023. Leslie’s common stock price continued to fall another $1.24 per share the following trading day, or over 18%, closing at $5.46 per share on July 17, 2023.
If you purchased or otherwise acquired Leslie’s shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
