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LESL.US
id: 817
Leslie's (LESL) Financial Misrepresentation Case
The defendant has requested the court to dismiss the case.
D. Arizona
Court2:23-cv-01887
Case number05/02/2021
Class period Start07/13/2023
Class period End11/07/2023
Lead Plaintiff motion deadline- Leslie's reported disappointing results and surprisingly cut outlook.
- $LESL fell 29% and lost $0.5B of its market cap.
- Shareholders suspect Leslie's of misleading about its true business prospects that consequently led to investment losses.
On July 13, 2023, Leslie's (LESL) revealed that sales in Q3 2023 had declined by a staggering 12%, its EPS was 42% below analysts’ estimates, and EBITDA 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 abruptly slashed its financial outlook by up to a staggering 60% for the remainder of the year.
- As an explanation, the Company revealed that “consumers entered the pool season with a greater than normal amount of chemicals leftover from last year,” resulting in reduced purchasing.
- In addition, Leslie’s announced that its CFO Steven M. Weddell would be stepping down.
On this news, $LESL fell 29% and lost over $0.5 billion of its market capitalization, damaging shareholders.
Investors have reasons to suspect Leslie's of misleading and failing to disclose that its previous growth was caused by customers over-purchasing products to stockpile and such sales did not reflect durable and sustainable demand or financial growth.
Case Status
Motion to dismiss
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
07/14/2023
Filing date
09/08/2023
Lead Plaintiff Deadline
11/07/2023
Judge
Hon. Susan M Brnovich