Shares of e.l.f. Beauty were down over 9% on November 20, 2024, after a Muddy Waters report alleged the company significantly overstated its revenue and inventory over the past three quarters. The report alleges that e.l.f. inflated revenue by $138 million to $188 million and misrepresented an inventory increase as a sourcing change. Muddy Waters' report also highlighted potential discrepancies between import data and reported inventory, raising concerns about the reliability of e.l.f.'s previously filed financial statements. Block & Leviton is investigating.
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