SAN DIEGO & NEW YORK--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP reminds investors it is investigating Casper Sleep Inc. (NYSE: CSPR) for potential violations of federal securities laws pursuant to its February 2020 initial public offering ("IPO"). Casper designs and sells sleep products to consumers in the United States, Canada, and Europe.
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Casper Sleep Inc. (CSPR) Reports Disappointing First Quarter 2020 Financials
On February 6, 2020, Casper completed its IPO offering 8.35 million shares of common stock at $12.00 per share and raising $88 million in net proceeds. In its Registration Statement, Casper assured investors that "[o]verall business profitability will be driven" by "continued net revenue growth," "gross margin improvements," and operational efficiencies. Then, on April 21, 2020, Casper announced it was taking significant actions to improve its cash position and business model, including downsizing its global operations and sales team totaling a 21% loss in workforce. That same day, the Company also revealed the resignation of its CFO and COO. Finally, on May 12, 2020, Casper announced its first quarter 2020 financial results, which revealed a net loss of $34.5 million and an adjusted EBITDA loss of $22.9 million, representing year-over-year increases of almost 98% and 60% respectively. Since the IPO, Casper stock consistently trades well below the IPO price, currently trading at around $9, representing a decline of 25% from its IPO price.
Casper Sleep Inc. (CSPR) Shareholders Have Legal Options
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