Lakeland's $18M EBITDA Promise Became a $5.85 Per-Share Loss

Levi & Korsinsky, LLP alleges Lakeland Industries misled investors about its acquisitions and financial performance

Apr. 13, 2026 at 6:59pm

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A photorealistic studio still-life image of a shattered metal piggy bank, representing the financial losses incurred by Lakeland Industries investors due to the company's failure to meet its projected performance targets.A shattered piggy bank symbolizes the steep losses suffered by Lakeland Industries investors as the company failed to deliver on its financial promises.NYC Today

Lakeland Industries, Inc. (NASDAQ: LAKE) projected adjusted EBITDA of at least $18 million for FY 2025, but the actual result was $17.4 million, followed by five consecutive quarters of missed consensus estimates. This culminated in a 38.97% single-day stock collapse and the withdrawal of all forward guidance. Levi & Korsinsky, LLP has filed a lawsuit alleging Lakeland misled investors about the performance of its acquisitions and financial projections.

Why it matters

The lawsuit raises questions about Lakeland's obligation to disclose known risks to its financial projections, and whether the company provided accurate information to the market about the performance of its acquisitions and overall strategic momentum.

The details

The lawsuit contends that behind Lakeland's rosy projections, the company's acquired businesses were experiencing production issues, shipping delays, certification holdups, and a slower than expected rollout of new products. Quarter after quarter, the gap between company promises and actual performance widened, with Lakeland missing revenue and earnings estimates multiple times.

  • Throughout the Class Period from December 1, 2023 to December 9, 2025, management issued a series of specific financial projections and operational commitments to investors.
  • As late as December 5, 2024, the CFO stated that 'given the totality of our positive results, trends and expectations, we continue to expect Adjusted EBITDA excluding FX of at least $18 million.'
  • Lakeland's stock fell $5.85 per share to close at $9.16 on December 10, 2025, after the company disclosed Q3 FY2026 revenue of $47.6 million, missing estimates by $9.05 million, and terminated its CFO.
  • The lead plaintiff deadline is April 24, 2026.

The players

Lakeland Industries, Inc.

A NASDAQ-listed company that manufactures and sells a range of safety garments and accessories for the industrial and public protective clothing market.

Joseph E. Levi, Esq.

An attorney at Levi & Korsinsky, LLP, a nationally recognized shareholder rights firm that has secured hundreds of millions of dollars for aggrieved shareholders over the past 20 years.

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What they’re saying

“Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. The contrast between what Lakeland told the market and what actually occurred raises important questions about the accuracy of those representations.”

— Joseph E. Levi, Attorney, Levi & Korsinsky, LLP

What’s next

The lead plaintiff deadline is April 24, 2026, and investors who purchased Lakeland stock during the class period may be able to recover their losses.

The takeaway

This case highlights the importance of companies accurately disclosing known risks and challenges to their financial projections, and the potential consequences for shareholders when there is a significant gap between promised and actual performance.