Clorox Company Stock Tanks (CLX) After Disclosing Significant IT Breach That Will Impact Earnings- Hagens Berman
Firm Encourages CLX Investors with Substantial Losses and Persons with Knowledge of When Cybersecurity Attack Occurred to Contact its Attorneys
News provided byHagens Berman Sobol Shapiro LLP
Nov 21, 2023, 6:19 PM ET
SAN FRANCISCO, Nov. 21, 2023 (GLOBE NEWSWIRE) -- Hagens Berman encourages The Clorox Company (NYSE: CLX) investors who suffered substantial losses to submit your losses now. The firm also urges persons with knowledge who may be able to assist the firm in its investigation to contact its attorneys.
The Clorox Company (NYSE: CLX) Investigation:
The investigation focuses on the propriety of Clorox’s statements concerning financial and operational risks to its business posed by possible cybersecurity attacks.
More specifically, on Aug. 14, 2023, Clorox disclosed that it identified unauthorized activity on some of its Information Technology (“IT”) systems and that it began taking remediation steps.
Then, on Sept. 18, 2023, Clorox disclosed that the cybersecurity attack caused wide disruptions of the company’s operations and that “[d]ue to the order processing delays and elevated level of product outages, the Company now believes the impact will be material on Q1 financial results.”
Most recently, on Oct. 4, 2023, Clorox disclosed the cybersecurity attack’s impact on preliminary Q1 2024 financial results. The company said that: (1) net sales are expected to decrease by 28% from the prior year quarter; (2) gross margins are expected to be down from the prior year quarter; and (3) diluted EPS is expected to be between a loss of $0.75 to a loss of $0.35.
These reports have driven the price of Clorox shares significantly lower.
“We’re looking to speak with investors, as well as persons with knowledge who may help us determine when management knew of the attack on Clorox’s IT systems occurred,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in The Clorox Company and have significant losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Clorox investigation, read more »
Whistleblowers: Persons with non-public information regarding DLocal should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CLX@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Past results do not guarantee future outcomes.
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Reed Kathrein, 844-916-0895
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