Waldencast’s (WALD) CFO/COO Gautier Abruptly Exits Amid SEC’s Investigation into Company’s Improper Accounting - Hagens Berman
SAN FRANCISCO - Hagens Berman urges Waldencast plc (NASDAQ: WALD) investors who suffered substantial losses to submit your losses now.
Contact An Attorney Now: WALD@hbsslaw.com, 844-916-0895
Waldencast plc (NASDAQ: WALD) Investigation:
On Jan. 31, 2024, Waldencast announced that Philippe Gautier, its current chief financial officer and chief operating officer, was leaving the company, effective immediately. The company named Manuel Manfredi, an outsider, as its new CFO.
The C-Suite reshuffle follows a string of financial reporting missteps, beginning first on July 5, 2023, when Waldencast announced that it would need to restate its financial statements for all of 2021 and for the first two quarters of 2022.
The company explained that the misreporting stemmed from improper revenue recognition involving sales of its Obagi skincare products to its Southeast Asia distributor. Among other things, Waldencast said it “expects the revenue in connection with sales of its Obagi products for the Vietnam market during second half of fiscal year 2022 to be reduced to zero from its prior expectation of $33 million[.]”
Then, on Jan. 16, 2024, Waldencast filed restated financial statements for 2020 and 2021. The company admitted that for 2021 it had (1) overstated revenues by about $63.6 million (or about 44%) and (2) overstated accounts receivable by about $44.6 million (or about 238%).
The Company further disclosed that as a result of the restatements, the SEC had launched an investigation and had subpoenaed the company for documents.
These events have driven the price of Waldencast shares sharply lower.
“We are investigating whether Waldencast may have intentionally overstated revenues to appear more profitable,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in Waldencast and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Waldencast investigation, read more »
Whistleblowers: Persons with non-public information regarding Waldencast should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email WALD@hbsslaw.com.
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