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

16 Oct 2024

Claim deadline

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

Accepting Claims

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.154

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

Settlement agreement date

2024-07-12

Court hearing date

15 November 2024

Exclusion deadline

25 October 2024

Objection deadline

25 October 2024

Hearing deadline

25 October 2024

Attorney fee

$1,545,000

Trades matching type

FIFO

+$3,000,000

Cash Settlement Amount