Muddy Waters’ founder and CEO, Carson Block, has accused E.L.F. Beauty of overstating its revenue over the past three years by as much as US$190 million at a conference in London, UK. The investment firm investigates public companies to expose fraud. E.L.F. calls the statement an attempt to negatively influence its share price for “its own benefit” and at the expense of all other E.L.F. shareholders. Shares in the beauty brand fell 10% on the day after Block alleged the false reporting.
