Company Announcements

Shareholders Who Acquired Shares in the January 2025 Offering Urged to Review Options

NEW YORK , March 11, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP announces that a securities class action has been filed against Lakeland Industries, Inc. (NASDAQ: LAKE).

YOU MAY BE AFFECTED IF YOU:

- Purchased LAKE stock between December 1, 2023 and December 9, 2025

- Lost money on your Lakeland Industries investment

- Acquired shares in or traceable to the Company's January 2025 public offering

Find out if you qualify for recovery or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

Lakeland raised approximately $46 million in gross proceeds through an underwritten public offering of 2,093,000 shares at $22.00 per share in January 2025. By December 10, 2025, shares closed at $9.16, a decline of over 58% from the offering price, representing a loss of $12.84 per share for offering participants.

The Alleged Offering Conducted on Artificially Inflated Shares

Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 prohibit making untrue statements of material facts or omitting facts necessary to prevent existing statements from being misleading. The action contends that Lakeland's January 2025 offering occurred while the Company's stock price was artificially inflated by misleading representations about the performance and prospects of its Pacific Helmets and Jolly acquisitions.

At the time of the offering, the lawsuit asserts, Lakeland had already experienced a revenue miss in Q2 FY2025, with management attributing the shortfall to "shipment timing" and delayed Jolly orders. Despite this warning, the Company continued to reaffirm adjusted EBITDA guidance of $18 million to $21.5 million for FY2025 and proceeded to raise capital from public investors at $22.00 per share.

What the Offering Documents Allegedly Misrepresented

As pleaded in the complaint, investors in the January 2025 offering were not adequately informed of material adverse conditions:

- Lakeland was experiencing significant, sustained shipping delays and production issues at Pacific Helmets and Jolly

- A large Jolly fire boots order initially expected in Q2 FY2025 had already shown signs of slippage

- The rollout of new products from both Pacific Helmets and Jolly was proceeding far slower than represented to investors

- Management's financial guidance of "at least $18 million" in adjusted EBITDA was unreliable given known operational headwinds

- The Company's widely promoted SSQ M&A strategy was not delivering the integration benefits and accretion promised to investors

- Subsequent results confirmed FY2025 adjusted EBITDA of only $17.4 million, below the floor of guidance, while FY2026 guidance was ultimately withdrawn entirely

Alleged Offering Proceeds and Defendant Motivation

The complaint contends that Lakeland's January 2025 offering generated approximately $46 million in gross proceeds while shares traded at artificially inflated levels. Plaintiffs allege this offering provided a direct financial motivation for maintaining optimistic public statements about the Company's acquisition strategy and financial outlook.

"The PSLRA provides important protections for investors harmed by alleged securities violations. When companies raise capital from the public, investors are entitled to receive complete and accurate information about known risks that could materially affect the value of their investment." -- Joseph E. Levi, Esq.

Start your claim now or contact Joseph E. Levi, Esq. at (212) 363-7500.

WHY LEVI & KORSINSKY -- Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Motions for lead plaintiff must be filed with the Court by April 24, 2026.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@levikorsinsky.com

Tel: (212) 363-7500

Fax: (212) 363-7171

View original content to download multimedia:https://www.prnewswire.com/news-releases/levi--korsinsky-llp-lakelands-46m-offering-allegedly-concealed-acquisition-risks-302710423.html

SOURCE Levi & Korsinsky, LLP