NEW YORK--(BUSINESS WIRE)--\u2013 Today, prominent investor rights law firm Bernstein Litowitz Berger & Grossmann LLP (\u201cBLB&G\u201d) filed a class action in the U.S. District Court for the Western District of Texas alleging violations of the federal securities laws by Helen of Troy Limited (\u201cHelen of Troy\u201d or the \u201cCompany\u201d) and certain of the Company\u2019s current and former senior executives (collectively, \u201cDefendants\u201d). The action is brought on behalf of all investors who purchased or otherwise acquired Helen of Troy common stock between April 24, 2024, and October 8, 2025, inclusive (the \u201cClass Period\u201d).<\/p>
\nBLB&G filed this action on behalf of its clients, City of Atlanta General Employees\u2019 Pension Plan, City of Atlanta Police Officers\u2019 Pension Plan, and City of Atlanta Firefighters\u2019 Pension Plan, and the case is captioned City of Atlanta General Employees\u2019 Pension Plan v. Helen of Troy Limited<\/i>, No. 26-cv-01528 (W.D. Tex.). The complaint is based on an extensive investigation and a careful evaluation of the merits of this case. A copy of the complaint is available on BLB&G\u2019s website by clicking here<\/a>.<\/p> \nHelen of Troy\u2019s Alleged Fraud<\/span><\/b><\/p> \nBased in El Paso, Texas, Helen of Troy markets a variety of consumer goods across several segments. Prior to the Class Period, the Company embarked on an aggressive growth-by-acquisition strategy. By October 2022, investors had become concerned over integration challenges and growing costs caused by these acquisitions, while the Company\u2019s organic revenue growth also stagnated.<\/p> \nCoinciding with investor and analyst concern following a series of guidance reductions, in fiscal year 2023, Helen of Troy\u2019s then COO, and later CEO, Noel Geoffroy initiated Project Pegasus, a \u201cglobal restructuring program focused on both efficiency and effectiveness.\u201d As a part of this initiative, the Company invested in a new distribution center in Tennessee to support its targeted growth.<\/p> \nThe claims against Defendants arise from misrepresentations regarding the success of Project Pegasus. Throughout the Class Period, which begins shortly after Noel Geoffroy became CEO, the Company boasted about the \u201cfuel\u201d it was generating from Project Pegasus. Although Helen of Troy admitted to some speed bumps in Project Pegasus, specifically citing \u201cimplementation hiccups\u201d with its new Tennessee distribution center, Defendants assured investors that \u201cdespite the delayed savings related to our Tennessee distribution center, Project Pegasus continues to move forward. We have made good progress on the cost of goods sold work streams, implementing multiple projects that reduce costs and simplify our supplier base.\u201d<\/p> \nThe truth began to emerge on July 9, 2024, when Helen of Troy announced its results for the first quarter of 2025, reporting earnings per share had declined by a staggering 49% from the prior year, and reducing full-year revenue outlook by over 20%. The Company attributed the poor financial results to an \u201cunusual number of internal and external challenges,\u201d delaying the long-awaited delivery of savings from the Company\u2019s strategic plan. As a result of these disclosures, the price of Helen of Troy shares declined by $24.68 per share, or 27.7%.<\/p> \nHelen of Troy continued to assure investors that Pegasus was \u201con track,\u201d and that the Company had continued making \u201csignificant investments\u201d into optimizing its productivity. Then, on May 2, 2025, the Company announced the sudden departure of its CEO, Noel Geoffroy, who spearheaded Project Pegasus and was only appointed as CEO 14 months prior.<\/p> \nMonths later, on July 10, 2025, Helen of Troy revealed that its net sales for the first quarter of fiscal 2026 had declined 11% year-over-year and its adjusted earnings per share had shrunk by nearly 60% compared to the prior year. The Company also disclosed a $414.4 million goodwill impairment, which it attributed to its continued decelerating revenue growth. The Company\u2019s interim CEO\u2014CFO Brian Grass\u2014conceded that Helen of Troy had become \u201ctoo complicated and lost focus,\u201d which \u201ccreated unnecessary sprawl and [the Company] became scattered in terms of priorities.\u201d As a result of these disclosures, the price of Helen of Troy shares declined by $7.04 per share, or 22.7%.<\/p> \nThen, on October 9, 2025, during his first earnings call as CEO, G. Scott Uzzell reported Helen of Troy\u2019s second quarter results for fiscal year 2026, announcing that quarterly sales were down 8.9% year-over-year, adjusted earnings per share plummeted by 51%, and that these results were caused by significant business disruptions and cost headwinds which the Company expects to persist for the remainder of the year. Uzzell acknowledged Helen of Troy\u2019s underperformance, stating that Helen of Troy \u201cearned [its] way into a difficult period.\u201d These disclosures caused Helen of Troy\u2019s stock price to decline by $6.90 per share, or 25%.<\/p> \nIf you wish to serve as Lead Plaintiff for the Class, you must file a motion with the Court no later than August 3, 2026, which is the first business day on which the U.S. District Court for the Western District of Texas is open that is 60 days after the publication date of June 2, 2026. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.<\/p> \nIf you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Scott R. Foglietta of BLB&G at 212-554-1903, or via e-mail at scott.foglietta@blbglaw.com<\/a>.<\/p> \nAbout BLB&G<\/span><\/b><\/p> \nBLB&G is widely recognized worldwide as a leading law firm advising institutional investors on issues related to corporate governance, shareholder rights, and securities litigation. Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity and pioneered the use of the litigation process to achieve precedent-setting governance reforms. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering over $40 billion on behalf of defrauded investors. More information about the firm can be found online at www.blbglaw.com<\/a>.<\/p>