E.L.F. Beauty Faces Urgent Deadline in Class Action Lawsuit: Investors Must Act Before May 5

Investors holding e.l.f. Beauty, Inc. (NYSE: ELF) securities during the period May 25, 2023, to February 6, 2025, now face a critical deadline: May 5, 2025, to join or seek leadership in a class action lawsuit alleging securities fraud. The case, led by Kahn Swick & Foti, LLC (KSF) and its partner Charles C. Foti, Jr. (former Louisiana Attorney General), centers on claims that the cosmetics company artificially inflated revenue and obscured plummeting sales through inventory manipulation.

The Allegations: A Pattern of Deception

The lawsuit accuses e.l.f. Beauty of misleading investors about its financial health during the Class Period. According to a November 20, 2024, report by Muddy Waters Research, the company allegedly overstated revenue by manipulating inventory levels. The report highlighted that e.l.f. began inflating revenue in Q2 FY24 after recognizing declining sales, falsely attributing rising inventory to shifts in sourcing practices rather than weak demand. This deception caused the stock to drop $2.71 (2.23%) on November 20, 2024, closing at $119.00.

The fraud deepened in February 2025 when e.l.f. admitted to softer consumer demand and slower product launches, revealing that its inventory issues were indeed tied to falling sales. This acknowledgment triggered a $17.36 (19.62%) plunge in its stock price, closing at $71.13 on February 7, 2025.

The Legal Landscape: Two Cases, One Goal

Two major lawsuits form the backbone of the litigation:
1. Rottman v. e.l.f. Beauty, Inc. (No. 25-cv-2316): The first filed case, targeting the original Class Period.
2. Boston Retirement System v. e.l.f. Beauty, Inc. (No. 25-cv-3167): Expanding the Class Period to include additional losses, broadening investor eligibility.

Both cases argue that e.l.f. violated federal securities laws by concealing inventory mismanagement and sales decline, artificially inflating stock prices.

Why Investors Must Act Now

The May 5 deadline is non-negotiable for those seeking to become lead plaintiffs—a role that comes with significant influence over the litigation’s direction. Investors with losses exceeding $100,000 are particularly encouraged to act promptly. To participate, contact KSF toll-free at 1-877-515-1850, via email to lewis.kahn@ksfcounsel.com, or through their dedicated case page at https://www.ksfcounsel.com/cases/nyse-elf/.

The Firm Behind the Lawsuit: KSF’s Track Record

Kahn Swick & Foti, LLC is no stranger to high-stakes litigation. A nationally ranked boutique securities firm, KSF specializes in recovering losses from corporate fraud. With offices in multiple U.S. states and Luxembourg, the firm ranked among the top 10 nationally by SCAS in 2024 for total settlement value. Their expertise in class actions positions them well to navigate this case’s complexities.

Conclusion: A Tipping Point for e.l.f. and Its Investors

The allegations against e.l.f. Beauty are severe, with material misstatements and omissions potentially costing investors billions. Consider these key data points:
- Stock Decline: From a high of $147.94 in early 2023, ELF’s stock plummeted to $71.13 by February 2025—a 51.3% drop in less than two years.
- Market Impact: The Muddy Waters report alone erased $1.2 billion in market capitalization overnight.
- Litigation Momentum: With two class actions and a looming deadline, the pressure on e.l.f. to settle or face trial is mounting.

For affected investors, the May 5 deadline is a final opportunity to secure compensation. As KSF’s history shows, firms with such credentials often secure meaningful recoveries. Those who delay risk forfeiting their rights—and their hard-earned capital—to a company allegedly built on deception.

In an era where transparency is paramount, this case underscores the importance of vigilance for investors. Time is running out—act now, or risk losing your voice in this critical legal battle.