Waldencast’s (WALD) Obagi Division Unreliable Financial Statements Case

On July 5, 2023, Waldencast (WALD) disclosed that certain financial statements of its division Obagi Global Holdings Limited should no longer be relied upon because of accounting errors.
On it, $WALD fell 10.2%, losing $76M+ of shareholder value.
Investors may have grounds to suspect that Waldencast was negligent in completing the Obagi merger deal, which led to their losses.
On July 5, 2023, Waldencast disclosed that certain financial statements of Obagi Global Holdings Limited should no longer be relied upon because the Company discovered errors related to revenue and expense recognition related to several Obagi’s distributors.

On this news, $WALD fell 10.2% and lost over $76 million of its market capitalization, seriously damaging shareholders.

Considering all the information, investors might have grounds to suspect that Waldencast negligently conducted due diligence for the Obagi merger, which led to their losses.

The case is already under investigation by at least one of the reputable law firms.

Case Status

Attorney Investigation

Alleged Offence

Misleading Statements,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

07/06/2023

Waldencast’s (WALD) Obagi Division Unreliable Financial Statements Case

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