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Boston Beer Stock Price Class Action Lawsuit Overview:
- Who: A shareholder brought a class action lawsuit against The Boston Beer Company, Inc.
- Why: Huber claims Boston Beer misled investors by not revealing that its hard seltzer was underperforming.
- Where: The class action lawsuit was lodged in New York federal court.
The Boston Beer Company committed federal securities law violations by misleading its investors about the state of its business operations and prospects, a new class action lawsuit alleges.
Plaintiff Mark Huber claims shareholders like himself suffered economic damages after Boston Beer’s stock price dropped when the company revealed its hard seltzer Truly was underperforming expectations.
Huber wants to represent a nationwide Class of investors who held Boston Beer stock between the periods of April 22, 2021 and Sept. 8, 2021.
Boston Beer Stock Plummets After Report of Slow Hard Seltzer Sales
Huber says Boston Beer stock dropped 26 percent in value in July and 3.7 percent in value in September after the company made announcements reducing its expected earnings for the year.
In July, Boston Beer blamed the earnings reductions on struggles with its hard seltzer sales and the beer industry as a whole, according to the class action lawsuit.
Boston Beer then withdrew its 2021 financial guidance in September and told investors it “expects to incur hard seltzer-related inventory write-offs, shortfall fees payable to 3rd party brewers, and other costs,” according to the class action lawsuit.
Huber claims Boston Beer failed to disclose to investors that it was struggling with sales of its hard seltzer and that positive statements the company had previously made were thus “materially misleading and/or lacked a reasonable basis.”
“As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages,” states the class action lawsuit.
Huber claims Boston Beer has violated the Securities Exchange Act of 1934. He is demanding a jury trial and requesting compensatory damages for himself and all Class Members.
A separate class action lawsuit was filed against Boston Beer last month by a consumer in New York who accused the company of inflating its stock price by failing to inform investors its hard seltzer wasn’t selling well.
Do you believe Boston Beer Company misled its investors about the performance of its hard seltzer? Let us know in the comments!
The plaintiff is represented by Jeremy A. Lieberman, J. Alexander Hood II, and Thomas H. Przybyłowski of Pomerantz LLP, and Peretz Bronstein of Bronstein, Gewirtz & Grossman, LLC.
The Boston Beer Stock Price Class Action Lawsuit is Huber v. The Boston Beer Company, Inc., et al., Case No. 1:21-cv-08338, in the U.S. District Court for the Southern District of New York.
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