21 Sep, 2021, 17:05 ET
RADNOR, Pa., Sept. 21, 2021 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed in the United States District Court for the Southern District of New York against The Boston Beer Company, Inc. (NYSE: SAM) ("Boston Beer") on behalf of those who purchased or acquired Boston Beer securities betweeen April 22, 2021 and September 8, 2021, inclusive (the "Class Period").
Deadline Reminder: Investors who purchased or acquired Boston Beer securities during the Class Period may, no later than November 15, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; toll free at (844) 887-9500; via e-mail at [email protected]; or click https://www.ktmc.com/the-boston-beer-company-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=boston_beer
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.
Boston Beer investors may, no later than November 15, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a 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 affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
SOURCE Kessler Topaz Meltzer & Check, LLP
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