NEW YORK, NY / ACCESSWIRE / October 10, 2023 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of The Clorox Company ("Clorox" or "the Company") (NYSE:CLX). Investors who purchased Clorox securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/clx.
The investigation concerns whether Clorox has violated federal securities laws.
Investigation Details:
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.
What's Next?
If you are aware of any facts relating to this investigation or purchased Clorox securities, you can assist this investigation by visiting the firm's site: bgandg.com/clx . You can also contact Peretz Bronstein or his law clerk and client relations manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC: 332-239-2660.
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Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Nathanson
332-239-2660 | [email protected]
SOURCE: Bronstein, Gewirtz & Grossman, LLC