Celsius settles shareholder suit with governance changes

Celsius Holdings , Inc. (NASDAQ:CELH), a $5.26 billion market cap beverage company specializing in bottled and canned soft drinks, has reached a settlement in a stockholder derivative lawsuit, according to a recent 8-K filing with the Securities and Exchange Commission. According to InvestingPro analysis, the company currently trades below its Fair Value, presenting a potential opportunity for investors. The agreement, which involves corporate governance reforms and a payment of attorneys’ fees, was given preliminary approval by a Nevada court.

On Monday, the Eighth Judicial District Court in Clark County, Nevada, granted preliminary approval to a settlement that addresses three related shareholder derivative actions previously disclosed by the company. The settlement includes various corporate governance reforms and the payment of $987,500 for plaintiffs’ attorneys’ fees and expenses.

The derivative actions were settled through a Stipulation and Agreement of Settlement on December 2, 2024. A final approval hearing is scheduled for March 27, 2025. Celsius shareholders have until February 25, 2025, to raise any objections to the settlement. The company maintains a strong financial position with a current ratio of 4.71 and minimal debt, as revealed by InvestingPro data.

The Notice of Pendency and Proposed Settlement of Derivative Actions, as well as the Stipulation and Agreement of Settlement, have been filed with the court and are available as part of the company’s SEC filing.

The settlement comes as Celsius continues to navigate the competitive landscape of the carbonated beverages sector. The company, headquartered in Boca Raton, Florida, has emphasized that the settlement will not impact its commitment to delivering quality products to its customers.

This development is part of Celsius Holdings’ ongoing efforts to strengthen its corporate governance and address concerns raised by its shareholders. The information is based on a press release statement and the settlement details are subject to final court approval.

In other recent news, Celsius Holdings has been the subject of several analyst revisions. Piper Sandler cut its stock target for the company to $33, maintaining an Overweight rating, and anticipates a potential increase in shipments by 2025, despite a current slowdown in momentum. TD Cowen, citing a sales slowdown and market risks, downgraded Celsius Holdings from ’Buy’ to ’Hold’ and revised its price target to $29.00.

On the other hand, Stifel maintained a positive stance on the company, keeping a Buy rating and a price target of $45.00, recognizing the company’s innovation efforts and focus on key demographic targeting. Truist Securities also sustained its Hold rating on shares of Celsius Holdings, with a steady price target of $35.00, noting strong fundamentals despite the stock’s volatility.

Morgan Stanley (NYSE:MS), however, reduced its price target for Celsius Holdings from $46.00 to $42.00, citing a dip in market share and promotional challenges in the fourth quarter. These developments are part of the recent analyst observations and adjustments related to Celsius Holdings.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.