HelloFresh Faces Securities Fraud Allegations, Stock Drops 6.3%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 11 2025
0mins
Source: PRnewswire
- Investigation Launched: Pomerantz LLP is investigating whether HelloFresh SE has engaged in securities fraud or other unlawful business practices, aiming to protect investor rights and potentially leading to a class action lawsuit.
- Management Scrutiny: A report by Grizzly Research alleges that HelloFresh's business is in sharp decline, with management accused of prioritizing personal enrichment over shareholder interests, which could impact the company's future governance structure.
- Declining Customer Demand: The report highlights a significant drop in customer demand for HelloFresh, with the CEO reportedly extracting cash by pledging company shares as collateral for bank loans related to real estate investments managed by his brother, raising concerns about the company's financial health.
- Stock Price Reaction: Following the report's publication, HelloFresh's stock price fell by $0.11, or 6.3%, closing at $1.65 per share, reflecting market pessimism regarding the company's future prospects.
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Analyst Views on HLF
Wall Street analysts forecast HLF stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for HLF is 14.60 USD with a low forecast of 8.00 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
3 Buy
1 Hold
1 Sell
Moderate Buy
Current: 16.490
Low
8.00
Averages
14.60
High
20.00
Current: 16.490
Low
8.00
Averages
14.60
High
20.00
About HLF
Herbalife Ltd. is a global nutrition company. The Company sells weight management; targeted nutrition; energy, sports and fitness; and other nutrition products to and through a network of independent members. The Company has two geographical segments: Primary Reporting Segment (North America, Latin America, EMEA (Europe, Middle East, and Africa), and Asia Pacific regions) and China. Its products are classified into five categories. The Weight Management category includes meal replacements, protein shakes, drink mixes, weight loss supplements, healthy snacks, and metabolism-boosting teas. The Targeted Nutrition category features functional beverages and dietary supplements. The Energy, Sports, and Fitness category consists of products that support a healthy and active lifestyle. The Outer Nutrition segment offers facial skincare, body care, and hair care products. The Literature and Promotional Items include start-up kits, sales tools, and educational materials.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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