October 27, 2020 - An amended consolidated complaint was filed.

June 19, 2020 - An investor in shares of Casper Sleep Inc. (NYSE: CSPR) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Casper Sleep Inc. in connection with certain allegedly false and misleading statements made in connection with the Company’s initial public offering conducted on or about February 7, 2020 (the “IPO” or “Offering”).

New York based Casper Sleep Inc. provides sleep products to consumers in the United States, Canada, and Europe.

On February 7, 2020, shares of Casper Sleep Inc dropped 18% on their second day of trading as a public company, falling below its initial public offering issue price of $12. Since then NYSE: CSPR shares declined to as low as $3.15 per share in March 2020. The New York Financial Times reported that, The share price drop gives the company a market capitalization of $437m and comes after Casper had reduced its value in the lead-up to the IPO.

According to the complaint the plaintiff alleges on behalf of purchasers of Casper Sleep Inc. (NYSE: CSPR) common shares, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that the Offering Documents made false and/or misleading statements and/or failed to disclose that Casper’s profit margins were actually declining, rather than growing, that Casper was changing an important distribution partner, costing it 130 basis points of gross margin in the first quarter of 2020 alone, that Casper was holding a glut of old and outdated mattress inventory that it was selling at steeply discounted clearance prices, further impairing the Company’s profitability, that Casper was suffering accelerating losses, further placing its ability to achieve positive cash flows and profitability out of reach, that Casper’s core operations were not profitable, but were causing the Company to suffer over $40 million in negative cash flows during the first quarter of 2020 alone and doubling its quarterly net loss year over year, that as a result of the foregoing, Casper’s ability to achieve profitability, implement its growth initiatives, and expand internationally had been misrepresented in the Offering Documents, as the Company needed to shutter its European operations, halt all international expansion, jettison over one fifth of its global corporate workforce, and significantly curtail new store openings in order to avoid an imminent cash and liquidity crisis, let alone achieve positive operating cash flows, and that as a result of the foregoing, Casper’s revenue growth rate was not sustainable and had not positioned the Company to achieve profitability.