Boston Beer investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described above, you may no later than November 15, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.
Boston Beer is a high-end alcoholic beverage company that produces hard seltzer, malt beverages, and hard cider at its cidery and under contractual arrangements at other brewery locations.
The Class Period commences on April 22, 2021, when Boston Beer announced its first quarter 2021 financial results. The press release also provided full-year 2021 earnings per share guidance, estimated to be between $22.00 and $26.00, an increase from the previously communicated range of between $20.00 and $24.00. The complaint alleges that Boston Beer failed to disclose that hard seltzer sales were decelerating.
The truth began to emerge on July 22, 2021. After the market closed, Boston Beer reduced its full year 2021 guidance, expecting earnings per share between $18 and $22, down from a prior range of $22 and $26. Boston Beer cited softer-than-expected sales in the hard seltzer category and overall beer industry and also stated that it had “overestimated the growth of the hard seltzer category in the second quarter.” Following this news, Boston Beer’s share price fell $246.54, or 26%, to close at $701.00 per share on July 23, 2021.
Then, on September 8, 2021, after the market closed, Boston Beer withdrew its 2021 financial guidance, citing decelerating sales of hard seltzer products. Boston Beer also stated that it “expects to incur hard seltzer-related inventory write-offs, shortfall fees payable to third party brewers, and other costs” for the remainder of fiscal 2021. Following this news, Boston Beer’s share price fell $21.09, or 3.7%, to close at $538.31 per share on September 9, 2021.
The complaint alleges that throughout the Class Period, the defendants failed to disclose to investors that: (1) Boston Beer’s hard seltzer sales were decelerating; (2) as a result, Boston Beer was reasonably likely to incur inventory write-offs; (3) Boston Beer was reasonably likely to incur shortfall fees payable to third party brewers; (4) as a result of the foregoing, Boston Beer’s financial results would be adversely impacted; and (5) as a result of the foregoing, the defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.