| COMPANY |
Starbucks Corporation |
| COURT |
United States District Court for the Western District of Washington |
| CASE NUMBER |
24-cv-01362 |
| JUDGE |
The Hon. John Hyungseung Chun |
| CLASS PERIOD |
November 2, 2023 through April 30, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS OCTOBER 28, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
On April 30, 2024, after the market closed, Starbucks announced the company’s financial results for the second quarter of 2024 and revealed that store sales declined globally by 4%, with traffic falling 7%, a 2% decline in new revenues to $8.6 billion, and that GAAP operating margins contracted 12.8% year-over-year. The company claimed that the poor operating margin results were driven by, among other things, higher general and administrative costs, primarily in support of Reinvention. The company further disclosed it was lowering its full year 2024 guidance due to global decline in store sales. On the corresponding earnings call, Defendant Rachel Ruggeri, the company’s Chief Financial Officer, attributed the poor results and lowered guidance on issues the company was facing in China, stating, “we still see the effects of a slower-than-expected recovery, and we see fierce competition among value players in the market.” On this news, the price of Starbucks common stock declined $14.05 per share, or nearly 16%, from a close of $88.49 per share on April 30, 2024, to close at $74.44 per share on May 1, 2024.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants misrepresented and/or failed to disclose that: (1) the company’s Reinvention plan failed to meet Starbucks’ stated measures; (2) Starbucks’ plan was ill equipped to handle the existing macro uncertainty and competition, particularly in the Chinese market; and (3) as a result, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.