According to the complaint, throughout the Class Period, Leslie’s customers were purchasing more chemicals than necessary, and doing so at significantly inflated prices. However, Leslie’s did not disclose that its significant sales growth was based on artificial demand, and instead claimed its growth initiatives drove its financial results and produced “healthy ongoing consumer demand” that was “durable” and “showed no signs of slowing.”

The lawsuit alleges that the defendants’ statements during the Class Period were materially false and/or misleading in that they failed to disclose to investors that, among other things, the Company’s growth was caused by customers over purchasing products, and that Leslie’s revenues and earnings were not indicative of durable and sustainable demand or financial growth.

On July 13, 2023, Leslie’s issued a press release announcing disappointing preliminary results for its fiscal third quarter of 2023 ended on July 1, 2023, including a 9% year-over-year sales decline and a cut to the company’s fiscal 2023 guidance. In addition, Leslie’s announced that its Chief Financial Officer would depart the following month. In response to this news, the price of Leslie’s common stock declined more than 29%, from a closing price of $9.52 per share on July 13, 2023, to a closing price of $6.70 per share on July 14, 2023. Leslie’s common stock price continued to fall another $1.24 per share the following trading day, or over 18%, closing at $5.46 per share on July 17, 2023.

Investors who purchased or acquired Leslie's securities between February 5, 2021 and July 13, 2023 may, no later than November 7, 2023, seek to be appointed as a lead plaintiff representative of the class.