A securities class action has been filed against Leslie, Inc. (LESL) on behalf of all persons or entities who purchased Leslie’s common stock between February 5, 2021 through July 13, 2023.  This case has been filed in the US District Court for the District of Arizona.

The Complaint alleges Defendants misled investors and/or failed to disclose that (1) the Company’s growth was caused by customers over purchasing products to stockpile in case of a chemical shortage; (2) such sales inflated revenues and earnings and were not indicative of durable and sustainable demand or financial growth; (3) the Company took advantage of chemical shortages by urging customers to stock up on the products because Leslie’s could not “guarantee availability” of chemicals in the future; and (4) any slowdown in sales was not a normalization of past seasonality, but was due to the prior excess stockpiling.

On this news, Leslie’s stock price fell 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, and continued to fall another 18% the next trading day to close at $5.46 per share on July 17, 2023.