The investigation centers on the veracity of Suja Life’s May 2026 registration statement. While the company touted a resilient business model capable of performing across market cycles, its August 4 earnings report revealed a 21% sequential drop in sales and a 7.5% decline in gross profit margins. Management blamed the sudden downturn on weakness within the grocery channel, forcing a downward revision of full-year growth guidance.

Following the disclosure, the company's shares cratered, erasing hundreds of millions of dollars in market value. Reed Kathrein, the partner leading the inquiry, stated the firm is examining whether the company was sufficiently transparent regarding its vulnerability to market cycles. Hagens Berman is currently inviting investors who suffered substantial losses and potential whistleblowers to come forward to assist in the review of potential federal securities law violations.