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Olaplex Holdings?
Attention Olaplex shareholders: contact investor rights lawyers for a free evaluation of your potential claims for compensation today.
- Did you acquire shares of Olaplex Holdings, Inc. (NASDAQ: OLPX) in or before September 2021, and do you still hold your Olaplex shares?
- Are you concerned about the recent performance of Olaplex’s stock price?
- Are you concerned about the conduct of Olaplex’s officers and directors related to Olaplex’s allegedly deficient financial reporting?
- Would you like your potential options for compensation and/or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation of your potential claims for compensation today, via email at arosca@rscounsel.law, through the contact form on this page, or by calling 888-998-0530.
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Posted November 10, 2023
Olaplex Class Action Investigation
Securities attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner have been investigating potential securities violations and corporate misconduct, as well as questionable business practices involving Olaplex Holdings, Inc. and have identified potential areas of concern for Olaplex investors.
What Olaplex Investors May Do
OLPX investors interested in an evaluation of their potential options to seek compensation and/or pursue claims related to their Olaplex Holdings investment may contact investor rights attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.
Get in Touch with an Experienced Team of Investor Attorneys
Attorneys Rosca, Scarlato, and Weidner have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law and/or corporate misconduct, and are currently evaluating potential claims on behalf of investors in Olaplex Holdings, Inc.
They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, following review and approval by the Court of any fee application.
Concerned OLPX stock investors may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Potential Compensation Claims
Has Olaplex Holdings Been Accused of Misconduct?
Olaplex Holdings, Inc. (“Olaplex”) and certain of its executives have been the subject of a class action lawsuit, filed in the United States District Court for the Central District of California in November 2022.
Olaplex is accused of, among others, violating securities laws by allegedly making materially false and/or misleading statements and failing to disclose materially adverse facts that allegedly caused Olaplex’s stock to trade at artificially inflated prices. According to the complaint, Olaplex and certain of its executives allegedly misrepresented the scale of macroeconomic pressures and competition in the haircare market while repeatedly assuring investors of the effectiveness of Olaplex’s strategic plans.
In June 2023 a revised class action complaint was filed to add more than a dozen defendants, identified as “selling stockholders.” The revised complaint alleged that contrary to representations made to investors, at the time of its initial public offering (IPO), Olaplex failed to disclose the significant risks posed by a fragrance ingredient commonly referred to as lilial used in one of Olaplex’s main products.
According to the revised class action complaint, in 2020 the European Union (“EU”) had classified lilial as a substance toxic to reproduction (harmful to fertility and fetal development), and as a skin allergen that could lead to hair loss. The EU ban on use of lilial was reportedly set to take effect on March 1, 2022.
Without informing its investors or consumers, in Spring of 2021 Olaplex allegedly decided to reformulate its product to remove lilial. According to the complaint, Olaplex allegedly mislead investors by touting the strength of its brand as one of the key growth drivers and failed to warn investors of the likely “reputational damage and adverse impact on sales once consumers learned of the lilial issue,” the complaint adds.
Furthermore, the Olaplex products were allegedly falsely represented as “clean” during the IPO, but unbeknownst to investors, the company allegedly continued to sell products from the old stock that still contained lilial for months after its IPO, the complaint alleges.
Potential Compensation Claims
What Happened to Olaplex’s Stock Price?
In early 2022, the ban of lilial and its use in one of Olaplex’s main products reportedly became a concern on various social media platforms. In March 2022, a class action lawsuit was allegedly filed in Canada by a group of consumers alleging that the company failed to inform them about the safety risk of using Olaplex products containing lilial. Consequently, the demand for Olaplex products reportedly decreased over the following months, which compounded by increased competition had a negative effect on Olaplex’s stock price, the class action complaint alleged.
According to the complaint, by late 2022 OLPX share price declined more than 72% from its offering price, reportedly closing at $5.75 on November 17, 2022. Data by Yahoo Finance indicates that the OLPX stock continued its downward trend and almost a year later closed at $1.73 on November 7, 2023.
On November 7, 2023, Olaplex issued its Q3 financial report, reporting 30% decrease in net sales compared to the same period in 2022, 66.5% decrease in net income and 54.5% decrease in net income.
What Happened to Olaplex’s Leadership?
In an 8-K report dated October 8, 2023, Olaplex announced the resignation of its President and Chief Executive Officer (CEO), JuE Wong. The company appointed John P. Bilbrey as interim CEO to be replaced by newly appointed CEO Amanda Baldwin on a date to be determined “between November 27, 2023 and January 8, 2024.”
Do Olaplex Shareholders Have Claims for Compensation?
Investor rights attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner at Rosca Scarlato are investigating potential options and evaluating potential claims for compensation and/or other redress on behalf of Olaplex’s long-term shareholders whose share value dropped following the alleged misrepresentations and omissions regarding Olaplex’s exposure to reputational risks and failure to disclose material information regarding the base business. The Rosca Scarlato attorneys have decades of combined experience representing victims of corporate or financial misconduct.
If you are an Olaplex investor who has acquired OLPX shares before September 2021 and are concerned about the drop in the value of your investment, you may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to learn more about your rights and for an evaluation of your potential claims, or to provide useful information.
All consultations are free. The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.
To reach attorney Alan Rosca or his colleagues, Olaplex investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
The general considerations on this page are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts and can tailor any advice to that investor’s facts. The Olaplex Class Action Investigation page is not affiliated with Olaplex Holdings, Inc. There has not been an adjudication on the merits of any allegations referenced in this blog post, as of the date of the posting.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
Kathryn Weidner – kweidner@rscounsel.law
Recent Investigations
DISCLAIMER
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.
