Philadelphia, Pennsylvania--(Newsfile Corp. - September 13, 2023) - Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Leslie's Incorporated ("Leslie's") (NASDAQ: LESL) on behalf of those who purchased Leslie's common stock between February 5, 2021 and July 13, 2023, both dates inclusive (the "Class Period").
Investor Deadline: Investors who purchased or acquired Leslie's securities during the Class Period may, no later than November 7, 2023, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (267) 637-3176, or Andrew Abramowitz at [email protected] or (215) 875-3015, or visit: https://investigations.bergermontague.com/leslies-incorporated/.
Leslie's provides pool supplies and related equipment to residential and professional customers. Approximately 80% of the company's offerings are products essential to the care of pools and spas, such as chemicals, equipment, cleaning accessories, and parts.
According to the complaint, throughout the Class Period, Leslie's customers were purchasing more chemicals than necessary, and doing so at significantly inflated prices. However, Leslie's did not disclose that its significant sales growth was based on artificial demand, and instead claimed its growth initiatives drove its financial results and produced "healthy ongoing consumer demand" that was "durable" and "showed no signs of slowing."
The lawsuit alleges that the defendants' statements during the Class Period were materially false and/or misleading in that they failed to disclose to investors that, among other things, the Company's growth was caused by customers over purchasing products, and that Leslie's revenues and earnings were not indicative of durable and sustainable demand or financial growth.
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. In addition, Leslie's announced that its Chief Financial Officer would depart the following month. 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.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Whistleblowers: Anyone with non-public information regarding Leslie's is encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco, and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
James Maro, Senior Counsel
Andrew Abramowitz, Senior Counsel
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