10 Companies Mirror Wall Street Downturn

8. Celsius Holdings Inc. (NASDAQ:CELH)

Energy drinks and supplements maker Celsius Holdings (CELH) saw its share prices drop by 7.76 percent to end the day at $26.76 each following a lawsuit that claimed the company made false or misleading statements and failed to disclose crucial information.

Specifically, the lawsuit alleged that Celsius materially oversold inventory to PepsiCo, Inc., significantly exceeding demand which set the stage for a future sales decline as Pepsi was expected to sharply reduce its purchases.

As Pepsi worked through the inventory overstock, Celsius’ sales were projected to drop substantially, negatively affecting the company’s financial performance and outlook. The lawsuit further claimed that Celsius’ sales rate to Pepsi was unsustainable and gave a misleading impression of the company’s overall financial health and future prospects.