The Red Flags: What Helen of Troy Insiders Allegedly Knew About Project Pegasus Failures Before Shareholders Were Told, Contributing to Over $38 Per Share in Cumulative Losses

NEW YORK, June 11, 2026 /PRNewswire/ — SueWallSt notifies investors in Helen of Troy Limited (NASDAQ: HELE) that a securities class action has been filed on behalf of shareholders who purchased securities between April 24, 2024, and October 8, 2025. Submit your information to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.

Helen of Troy shares lost over $38 per share across four corrective disclosures, including a single-day decline of $24.68 per share (27.7%). The lead plaintiff deadline is August 3, 2026.

What They Allegedly Knew

The securities action contends that Helen of Troy’s senior leadership was aware that Project Pegasus, the company’s centerpiece restructuring program, lacked the budget and resources necessary to deliver its promised $75 million to $85 million in savings. The lawsuit maintains that executives personally spearheaded and oversaw the initiative, making it implausible they were unaware of the program’s fundamental shortcomings even as they publicly declared it was “generating fuel” and remained “on track.”

The Red Flags That Emerged

Plaintiffs assert that multiple warning signs preceded the corrective disclosures:

• The company’s internal budget and resource constraints were allegedly insufficient to achieve stated restructuring goals, a fact known to leadership before public assurances were made
• A new Tennessee distribution center repeatedly failed to achieve targeted labor efficiencies, yet the company continued to characterize the issues as mere “implementation hiccups”
• Earnings per share declined 49% year-over-year in Q1 FY2025, yet management continued to assure investors the restructuring was “on track” in subsequent quarters
• The CEO who spearheaded Project Pegasus departed suddenly after only 14 months, with the company citing “underperformance in recent years” and seeking a replacement with “turnaround/restructuring experience”
• A $414.4 million goodwill impairment was ultimately recorded in July of 2025, reflecting the severity of revenue deceleration that the action alleges was foreseeable

Inside Knowledge vs. Public Statements

The complaint charges that while leadership privately understood the company had become “too matrixed, too slow, and at times disconnected from each other and the marketplace,” public statements painted a starkly different picture. Investors heard that Project Pegasus was “instrumental” in transformation and was delivering “critical fuel for reinvestment.” The gap between what was allegedly known internally and what was communicated externally widened over the 18-month Class Period.

Act now to protect your rights or call (888) SueWallSt.

“The timeline raises important questions about when certain risks were known internally versus when they were disclosed to the investing public. Shareholders who purchased HELE stock based on repeated assurances about Project Pegasus deserve to understand what leadership knew and when they knew it.” — Joseph E. Levi, Esq.

What Investors Were Not Told

The action alleges investors were not told that macroeconomic conditions and internal constraints had rendered the original Project Pegasus savings plan unachievable. Instead of disclosing these material risks, the complaint contends, leadership continued to tout the program’s progress through at least six consecutive earnings calls and investor presentations, maintaining savings estimates that were allegedly no longer realistic.

ABOUT THE FIRM — SueWallSt represents investors in securities class actions nationwide, with a track record of recovering hundreds of millions for shareholders harmed by alleged corporate concealment. Ranked among ISS Top 50 for seven consecutive years. Lead plaintiff applications must be submitted by August 3, 2026.

Frequently Asked Questions About the HELE Lawsuit

Q: When did Helen of Troy allegedly mislead investors? A: The class period runs from April 24, 2024, to October 8, 2025. The alleged fraud was revealed through multiple corrective disclosures causing significant cumulative stock declines.

Q: What specific misstatements does the HELE lawsuit allege? A: The complaint alleges Helen of Troy made materially false or misleading statements regarding the progress, resource adequacy, and expected savings of its Project Pegasus restructuring program. When the true state of affairs was revealed, the stock price declined sharply on multiple occasions.

Q: What do HELE investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact SueWallSt for a free, no-obligation evaluation at jlevi@SueWallSt.com or (888) SueWallSt. No immediate action is required to remain eligible as a class member.

Q: What if I already sold my HELE shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: What if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.

CONTACT:

SueWallSt

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@SueWallSt.com

Tel: (888) SueWallSt

Fax: (212) 363-7171

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SOURCE SueWallSt.com