The Clorox Company Investigation - CLX
Investors who suffered a loss and would like to learn more, click here to contact us.
Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws involving The Clorox Company (NYSE: CLX) focused on whether Clorox and certain of its top executives made false and/or misleading statements and/or failed to disclose material information to investors.
If you have information that could assist in this investigation or if you are a Clorox investor who suffered a loss and would like to learn more, you can provide your information in the form on this page. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at email@example.com.
THE COMPANY: Clorox is a multinational manufacturer and marketer of consumer and professional products.
THE REVELATIONS: 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.”
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.”
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.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.