Overview

A class action lawsuit has been filed against e.l.f. Beauty, Inc. (“Elf” or the “Company”) and certain of the Company’s current senior executive officers alleging violations of the federal securities laws.  The Company’s common stock trades in an efficient market on the New York Stock Exchange under the ticker symbol “ELF.”

The Elf class action lawsuit was brought on behalf of all persons and entities who purchased or otherwise acquired Elf securities between November 1, 2023, and November 19, 2024, both dates inclusive (the “Class Period”).

Elf presents itself as a company with a scalable, asset-light supply chain, emphasizing speed to market, high quality, and low costs.  The Company relies heavily on third-party manufacturers in China and claims to have ample manufacturing capacity and redundant capabilities to mitigate supply chain disruptions.  Additionally, Elf has assured investors that its broad supplier base allows it to remain cost-competitive and efficiently meet product demand.

Effective inventory management is crucial to Elf’s financial performance, as the Company generates revenue from beauty product sales, adjusted for discounts, markdowns, and returns.  Maintaining optimal inventory levels is essential to avoiding overstock issues that could lead to write-downs or forced discounting, which would negatively impact profitability.  However, despite its public assurances, Elf’s inventory management proved ineffective, as rising inventory levels signaled a slowdown in sales beginning in the second fiscal quarter of 2024.  Instead of addressing these concerns, Elf continued to portray itself as a high-growth company with strong retail relationships and a competitive advantage in the beauty market.

Throughout the Class Period, Elf made materially false and misleading statements about its business operations and financial health.  The Company misrepresented the true cause of its rising inventory levels, falsely attributing to the issue to changes in sourcing practices rather than declining sales.  Additionally, Elf allegedly inflated revenue, profits, and inventory figures over multiple quarters to maintain investor confidence.  These misstatements led investors to believe that the Company’s financial prospects were stronger than they were.

Once the truth emerged, Elf’s stock price suffered a material decline, as investors recognized that the Company’s public statements had been misleading.  The lawsuit alleges that Elf’s executives knowingly concealed the Company’s financial struggles, overstating its performance and stability, which ultimately caused significant losses for investors when the misrepresentations were exposed.

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If you purchased or otherwise acquired Elf securities between November 1, 2023, and November 19, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as lead plaintiff in the Elf class action lawsuit is May 5, 2025.