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In refuting the claim, company says lawsuit relies on “incomplete data and flawed assumptions” and had omitted key context.
March 12, 2025
By: TOM BRANNA
Editor
ELF Beauty faces a class action lawsuit, accusing the brand of inflating revenue, profits and inventory figures in its financial reports. The case—Rottman v. E.l.f. Beauty, inc. et al—was filed on March 6 following a November 2024 report by investment research firm Muddy Waters.ELF Beauty recorded a $36.9 million increase in inventory in Q2 FY24. The company attributed changes to its sourcing practices. The 48-page report by Muddy Waters claimed ELF’s reported inventory levels were not equivale...
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