E.l.f.’s stock falls after short seller Spruce Point alleges ties to defunct NXIVM sex cult

E.l.f. Beauty Inc.’s stock
ELF,
-6.92%

tumbled almost 5% on Friday, after short seller Spruce Point Capital Management said the company has ties to the now-defunct NXIVM cult and may use some of its teaching in its marketing. The cult’s leader Keith Raniere was sentenced to 120 years in prison in October of 2020 for racketeering, sex trafficking of women, forced labor conspiracy and wire fraud conspiracy, while other leaders also received jail time. Spruce Point and E.l.f. did not immediately respond to request for comment. The stock has gained 71% in the year to date, while the S&P 500
SPX,
+1.31%

has gained 14%.

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