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Olaplex Holdings, Inc.


A securities class action has been filed against Olaplex Holdings, Inc. (OLPX) on behalf of all persons and entities other than Defendants that purchased or otherwise acquired Olaplex common stock pursuant and/or traceable to the Company’s initial public offering conducted on or around September 30, 2021.  This case has been filed in the USDC – C.D.CA.

On or around September 29, 2021, Olaplex commenced its initial public offering (“IPO”), selling 73.7 million shares priced at $21.00 per share. Then, on September 29, 2022, a Piper Sandler analyst downgraded Olaplex to Neutral from Overweight, stating that her work revealed that “competition and misinformation pose growing risks to the company.”

On this news, Olaplex’s stock price fell $1.33 per share, or 12.15%, to close at $9.62 per share on September 29, 2022.

Then, on October 18, 2022, Olaplex issued a press release in which “the Company revised its guidance for the 2022 fiscal year”. Olaplex said it now expects fiscal year 2022 revenue between $704 million and $711 million, significantly down from its prior guidance range of $796 million to $826M. Olaplex stated that “[t]he Company’s updated guidance primarily reflects a slowdown in sales momentum that it attributes to macro-economic pressures, increased competitive activity including discounting, and a moderation in new customer acquisition, as well as inventory rebalancing across certain customers which the Company believes are in response to these same macro-economic pressures.”

On this news, Olaplex’s stock price fell $5.55 per share, or 56.69%, to close at $4.24 per share on October 19, 2022.

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Securities