According to the lawsuit, the registration statement and prospectus used to effectuate the Company’s IPO contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation. Specifically, the offering documents made false and/or misleading statements and/or failed to disclose that:
- macro-economic pressures and competition in the haircare market were more robust than the Company had represented to investors;
- accordingly, the Company was unlikely to maintain its sales and revenue momentum;
- as a result, it was unlikely that the Company would be able to achieve the financial and operational growth projected in the offering documents; and
- as a result, the offering documents were materially false and/or misleading and failed to state information required to be stated therein.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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