Girard Sharp, LLP and Malmfeldt Law Group P.C., national investment, securities, and class action firms, announce that they are investigating claims on behalf of investors who acquired stock in Waldencast Acquisition Corp. (NASDAQ: WALD) prior to its merger with Obagi Global Holdings Ltd. in July 2022.

If you acquired Waldencast stock and would like to discuss your potential claim, please email apolk@girardsharp.com or call (866) 981-4800 for a free consultation.

On July 5, 2023, Waldencast announced that certain of Obagi’s financial statements for periods prior to the merger transaction “should no longer be relied upon.” The financial statements containing errors and requiring restatement included those for 2021 and for the first quarter of 2022. These financial statements were included within Waldencast’s registration and proxy statement soliciting stockholder approval of the merger.

In its July 5 announcement, Waldencast stated that the restatement of Obagi’s 2021 financials was “linked to revenue recognition applicable to…marketing and other services purportedly performed by certain of Obagi’s distributors” and that it expected that Obagi’s 2021 revenue to be adjusted downward by approximately $41 million.

On July 7, 2022, approximately three weeks prior to the merger, Waldencast boasted in a prospectus that Obagi’s sales had grown at the annual rate of 17% between 2019 and 2021. This representation now appears to have been false.

On the news of the restatement, the price of Waldencast stock declined by approximately 10% on July 6, 2023. And since the merger with Obagi on July 27, 2022, the stock price has declined by approximately 25%.

If you acquired Waldencast stock, click here to participate.

We also encourage you to contact Adam Polk of Girard Sharp LLP, 601 California Street, Suite 1400, San Francisco, CA 94108, at (866) 981-4800, to discuss your rights free of charge. You can also reach us through the firm’s website at www.girardsharp.com, or by email at apolk@girardsharp.com.

Why Girard Sharp?

Girard Sharp represents investors, consumers, and institutions in class actions and other complex litigation nationwide. We serve on the Plaintiffs’ executive committee in the recent spoofing litigation against JPMorgan Chase that settled for $60 million, a favorable resolution that the district court preliminarily approved in December 2021. Our attorneys have obtained multimillion-dollar recoveries for victims of unfair and deceptive practices in antitrust, financial fraud, and consumer protection matters against some of the country’s largest corporations, including Raymond James, John Hancock, and Sears. Girard Sharp has earned top-tier rankings from U.S. News and World Report for Securities and Class Action Litigation and has been repeatedly selected as an Elite Trial Lawyers finalist by the National Law Journal.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230727587841/en/