NEW YORK, Oct. 17, 2023 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of The Clorox Company ("Clorox" or the "Company") (NYSE: CLX). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether Clorox and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On August 14, 2023, Clorox disclosed that it had "identified unauthorized activity on some of its Information Technology (IT) systems" and that "the incident has caused, and is expected to continue to cause, disruption to parts of [Clorox]'s business operations." On this news, Clorox's stock price fell $2.56 per share, or 1.6%, to close at $157.61 per share on August 15, 2023. Then, on September 18, 2023, Clorox further revealed that, after the cybersecurity attack, Clorox "implemented its business continuity plans and began manual ordering and processing procedures shortly . . . at a reduced rate of operations" and that Clorox was "operating at a lower rate of order processing and has recently begun to experience an elevated level of consumer product availability issues." Clorox also disclosed that "[d]ue to the order processing delays and elevated level of product outages, [Clorox] now believes the impact will be material on Q1 financial results."
On this news, Clorox's stock price fell $3.50 per share, or 2.39%, to close at $142.70 per share on September 18, 2023.
Thereafter, on October 4, 2023, Clorox disclosed certain preliminary financial results for the first quarter of fiscal 2024, including that "[n]et sales are expected to decrease by 28% to 23% from the year-ago quarter" and "[o]rganic sales are now expected to decrease by 26% to 21% for the quarter, compared to [Clorox]'s prior expectations of mid-single-digits growth as provided in the Q4 earnings remarks" "due to the impacts of the recent cybersecurity attack." Similarly, Clorox further revealed that "[g]ross margin is now expected to be down from the year-ago quarter compared to [Clorox]'s prior expectations for gross margin to be up" and "[a]djusted EPS is expected to be a loss of $0.40 to $0.00" given the impact from the cybersecurity attack.
On this news, Clorox's stock price fell $6.90 per share, or 5.23%, to close at $124.93 per share on October 5, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP
