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CSPR.US
id: 1250

Casper Sleep (CSPR) $3M Investor Settlement

E.D. New York
Court
1:20-cv-02744
Case number
19 Mar 2020
Class period Start
12 May 2020
Class period End
Casper Sleep reached a settlement with $CSPR investors over claims of declining profits, halted expansion, and layoffs.

Outline

Back in 2020, Casper Sleep disclosed closing operations in Europe and reducing the workforce. After the company’s announcement, $CSPR fell significantly. Following this, Casper faced a lawsuit from investors for overstating its profit margins, core operations profitability, and growth prospects in its IPO.

Timeline
  • April 21, 2020: Casper announced closing European operations and reducing the workforce by 21%.
  • May 12, 2020: Casper reported its Q1 2020 net loss had nearly doubled.
  • June 4, 2020: $CSPR traded 32% below the IPO price.
  • June 19, 2020: Investors sued Casper, alleging that the company provided misleading information during its IPO.
Background

On January 10, 2020, Casper filed its IPO registration statement.

Casper reported that its retail stores were "four-wall profitable," and that its e-commerce operations were maintaining "first purchase profitable" economics.

They highlighted achieving a 50% gross margin for the three months ended September 2019, up from 42% in 2016. Casper also stated it had $26.9M in cash and cash equivalents as of December 2018​​.

However, in April 2020, Casper announced the closure of its European operations and a 21% workforce reduction to improve its cash position amid significant financial challenges.

On May 12, 2020, Casper reported a $34.5M net loss for Q1 2020, almost double the loss from the previous year. Their profit margin also dropped by 2%.

By June 4, 2020, $CSPR traded 32% below the IPO price​​.

On June 19, 2020, investors sued Casper Sleep, alleging it provided misleading information during its IPO.

What can investors expect now?

Casper Sleep reached a settlement with $CSPR investors over claims of declining profits, halted expansion, and layoffs.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Stipulative Settlement
Alleged Offence
Misleading Statements
Financial Misrepresentation
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Filing date
18 August 2020
Plaintiffs
Saleh Doron Gahtan
Attorneys
Pomerantz LLP (New York, NY), The Schall Law Firm (Los Angeles, CA)
Defendants
Philip Krim, Gregory Macfarlane, Neil Parikh, Diane Irvine, Anthony Florence, Jack Lazar, Benjamin Lerer, Karen Katz, Dani Reiss.
Judge
Margo K. Brodie
Administrator
Strategic Claims Services
Trades matching type
FIFO
+$3,000,000
Cash Settlement Amount

Casper Sleep Inc

Casper Sleep Inc., together with its subsidiaries, designs and sells sleep products to consumers in the United States, Canada, and Europe. It offers a range of mattresses, pillows, sheets, duvets, ...

    Ticker
    CSPR.US
    ISIN
    US1476261052
    CIK
    1598674
    Sector
    Consumer Cyclical
    Industry
    Specialty Retail
    Country
    USA
    Address
    Three World Trade Center, New York, NY, United States, 10007