1. Investigation into Waldencast for alleged securities fraud by officers. 2. Waldencast expects 2025 revenue to match 2024, reducing growth expectations. 3. Company reported a $185.2 million loss in H1 2025 due to impairments. 4. Shares declined 6.49% following disappointing financial outlook. 5. Pomerantz LLP leads investigation amidst claims of corporate misconduct.
FAQ
Why Very Bearish?
Continued losses and legal investigations can significantly erode investor confidence, leading to further declines. Historical examples include Enron and other firms that faced similar situations, resulting in severe stock price collapse.
How important is it?
The investigation and financial losses directly affect WALD's market perception and confidence which are critical in achieving stock recovery. Shareholder actions often arise from such investigations, impacting stock performance rapidly.
Why Short Term?
Immediate legal scrutiny often leads to short-term stock volatility and negative sentiment among investors. Past events indicate a trend where investigations lead to immediate sell-offs.
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Investor Alert: Pomerantz Law Firm Investigates Claims for Waldencast plc (NASDAQ: WALD)
Pomerantz LLP has initiated an investigation concerning potential securities fraud claims on behalf of investors of Waldencast plc (NASDAQ: WALD). The firm is scrutinizing whether Waldencast and its executives may have engaged in unlawful business practices that could have misled investors.
Details of the Investigation
Waldencast's financial disclosures have raised questions among investors regarding the integrity of its financial reporting. Pomerantz urges any individuals impacted by these developments to reach out to Danielle Peyton at [email protected] or call 646-581-9980, ext. 7980 for more information regarding the investigation.
Financial Results and Stock Performance
On November 24, 2025, Waldencast reported its financial results for the second quarter of 2025, revealing a net loss of $185.2 million for the first half of the year. This significant loss was primarily attributed to impairment charges of $132.1 million related to its Obagi Medical brand and $20 million for the Milk Makeup brand.
The company also revised its full-year financial outlook, now expecting net revenue to align closely with 2024 figures and an adjusted EBITDA margin in the high single digits. This is a shift from previous guidance which anticipated mid-teens net revenue growth and an adjusted EBITDA margin in the mid-to-high teens.
Following the announcement, WALD's Class A ordinary share price fell by $0.20, or 6.49%, closing at $2.88 per share on November 24, 2025.
About Pomerantz LLP
Pomerantz LLP is recognized as a leading law firm specializing in corporate, securities, and antitrust class action litigations. Established over 85 years ago by the late Abraham L. Pomerantz, a pioneer in securities class actions, the firm has continually focused on protecting the rights of investors against securities fraud and corporate misconduct.
With offices across New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, Pomerantz has achieved numerous multimillion-dollar outcomes for class members affected by financial fraud. For further details, visit www.pomlaw.com.
Contact Information
For inquiries related to the investigation, please contact:
- Danielle Peyton
- Pomerantz LLP
- Email: [email protected]
- Phone: 646-581-9980 ext. 7980