New York, New York--(Newsfile Corp. - November 3, 2023) - WHY: Rosen Law Firm, a global investor rights law firm, continues to investigate potential securities claims on behalf of shareholders of The Clorox Company (NYSE: CLX) resulting from allegations that Clorox may have issued materially misleading business information to the investing public.
SO WHAT: If you purchased Clorox securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Firm is preparing a class action seeking recovery of investor losses.
WHAT TO DO NEXT: To join the prospective class action, go to https://rosenlegal.com/submit-form/?case_id=19757 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] or [email protected] for information on the class action.
WHAT IS THIS ABOUT: On August 14, 2023, Clorox disclosed that it had "identified unauthorized activity on some of its Information Technology (IT) systems" and that "the incident has caused, and is expected to continue to cause, disruption to parts of [Clorox]'s business operations."
Then, on September 18, 2023, Clorox further revealed that, after the cybersecurity attack, Clorox "implemented its business continuity plans and began manual ordering and processing procedures shortly … at a reduced rate of operations" and that Clorox was "operating at a lower rate of order processing and has recently begun to experience an elevated level of consumer product availability issues." Clorox also disclosed that "[d]ue to the order processing delays and elevated level of product outages, [Clorox] now believes the impact will be material on Q1 financial results." On this news, Clorox's stock price fell $3.50 per share, or 2.39%, to close at $142.70 per share on September 18, 2023.
Then, on October 4, 2023, Clorox disclosed certain preliminary financial results for the first quarter of fiscal year 2024, including that "[n]et sales are expected to decrease by 28% to 23% from the year-ago quarter" and "[o]rganic sales are now expected to decrease by 26% to 21% for the quarter, compared to [Clorox]'s prior expectations of mid-single-digits growth as provided in the Q4 earnings remarks" "due to the impacts of the recent cybersecurity attack." Similarly, Clorox revealed that "[g]ross margin is now expected to be down from the year-ago quarter compared to [Clorox]'s prior expectations for gross margin to be up" and "[a]djusted [earnings per share] is expected to be a loss of $0.40 to $0.00" given the impact from the cybersecurity attack. On this news, Clorox's stock price fell $6.90 per share, or 5%, to close at $124.93 per share on October 5, 2023.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/186300