GlobeNewswire Inc | Jul 23, 2020 12:50PM EDT

July 23, 2020

NEW YORK, July 23, 2020 (GLOBE NEWSWIRE) -- Zhang Investor Law announces a class action lawsuit on behalf of shareholders who bought shares of Casper Sleep Inc. (NYSE- CSPR) pursuant and/or traceable to the Companys initial public offering conducted on or about February 7, 2020.

If you wish to serve as lead plaintiff, you must move the Court no later than August 18, 2020. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

To join the class action, http://zhanginvestorlaw.com/join-action-form/?slug=casper-sleep-inc&id=2291 call Sophie Zhang, Esq. toll-free at 800-991-3756 or emailinfo@zhanginvestorlaw.comfor information on the class action.

http://zhanginvestorlaw.com/join-action-form/?slug=casper-sleep-inc&id=2291.

According to the lawsuit, throughout the Class Period (1) Caspers profit margins were actually declining, rather than growing; (2) Casper was changing an important distribution partner, costing it 130 basis points of gross margin in the first quarter of 2020 alone; (3) Casper was holding a glut of old and outdated mattress inventory that it was selling at steeply discounted clearance prices, further impairing the Companys profitability; (4) Casper was suffering accelerating losses, further placing its ability to achieve positive cash flows and profitability out of reach; (5) Caspers 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; (6) as a result of the foregoing, Caspers 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 (7) as a result of the foregoing, Caspers revenue growth rate was not sustainable and had not positioned the Company to achieve profitability.

A class has not been certified. You may retain counsel of your choice. You may take no action at this time and be an absent class member. Your ability to obtain a recovery is not dependent upon being a lead plaintiff.

Zhang Investor Law represents investors worldwide. Attorney Advertising. Prior results do not guarantee similar outcomes.

Zhang Investor Law P.C. 99 Wall Street, Suite 232 New York, New York 10005info@zhanginvestorlaw.com tel: (800) 991-3756