Faruqi & Faruqi Investigates Investor Claims in Major Firms: Potential Legal Fallout
New York City, Sunday, 30 March 2025.
Faruqi & Faruqi investigates investor claims against prominent companies e.l.f. Beauty and Merck, focusing on alleged security law violations. The inquiries could lead to significant financial implications.
E.l.f. Beauty Under Scrutiny for Inventory and Revenue Claims
Law firm Faruqi & Faruqi has launched an investigation into e.l.f. Beauty regarding potential securities law violations, with particular focus on allegations of inflated revenue reports and misleading inventory statements. According to the investigation, the company allegedly made false statements about rising inventory levels, attributing them to sourcing practice changes rather than declining sales [1]. The situation came to light when Muddy Waters Research published a report on November 20, 2024, claiming that e.l.f. had ‘materially overstated revenue over the past three quarters’ [1]. Investors who experienced losses exceeding $50,000 have until May 5, 2025, to seek lead plaintiff status in the federal securities class action [1].
Merck Faces Investigation Over Gardasil Revenue Projections
In a parallel investigation, Merck & Co. faces scrutiny over its Gardasil vaccine revenue projections. The pharmaceutical giant reported a 3% decline in GARDASIL/GARDASIL 9 sales to $8.6 billion in its Q4 and full-year 2024 results [2]. The investigation centers on Merck’s earlier projection of $11 billion in Gardasil sales by 2030, which investigators allege was inflated due to unclear demand visibility in China [2]. Following the announcement of a temporary pause in Chinese shipments on February 4, 2025, Merck’s stock experienced a significant decline of $9.05 per share, closing at $90.74 [2]. Investors have until April 14, 2025, to seek lead plaintiff status in this case [2].
Broader Pattern of Securities Investigations
The investigations into e.l.f. Beauty and Merck are part of a broader series of securities class actions being pursued by Faruqi & Faruqi. The firm is currently handling multiple cases involving significant investor losses, including investigations into Geron Corporation, where the stock price declined by -32.068% on February 26, 2025 [4], and Maravai LifeSciences, which postponed its fiscal 2024 earnings release due to a $3.9 million revenue recognition error [5]. These cases reflect a growing trend of scrutiny over corporate financial reporting and disclosure practices [GPT].