NEW YORK, June 24, 2019 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Anheuser-Busch InBev SA/NV ("Anheuser-Busch" or the "Company") (NYSE: BUD) of the August 20, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Anheuser-Busch stock or options between March 1, 2018 and October 24, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/BUD. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected].
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Attn: Richard Gonnello, Esq.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who American Depositary Shares ("ADS"), each of which represents one of the Company's ordinary shares, between March 1, 2018 and October 24, 2018 (the "Class Period"). The case, City of Sterling Heights General Employees' Retirement System v. Anheuser-Busch InBev SA/NV, No. 1:19-cv-05854 was filed on June 21, 2019 and has been assigned to judge Alvin K. Hellerstein.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and misleading statements and/or failing to disclose adverse information regarding Anheuser-Busch's business, operations and prospects. Specifically, defendants failed to disclose, among other things, that cost-cutting measures the Company had put in place had run their course; the devaluation of key emerging market currencies and input cost inflation was having a material adverse effect on the Company's margins, EBITDA and profitability; Anheuser-Busch had been experiencing less than expected growth and profits in certain key markets; Anheuser-Busch was not going to be able to maintain its then current dividend and still meet its deleveraging targets; and Anheuser-Busch was at risk of having its credit ratings downgraded. As a result of this information being withheld from the market, the price of Anheuser-Busch ADSs was artificially inflated to as high as $117 per ADS during the Class Period.
On October 25, 2018, the Company reported its financial results for the quarter and nine-month periods ended September 30, 2018, announcing that it had cut its dividend by 50% to "accelerate deleveraging toward our optimal capital structure of around 2x net debt to EBITDA ratio."
On this news, Anheuser-Busch share price fell from $82.25 per share on October 24, 2018 to $74.54 per share on October 25, 2018—a drop of $7.71 or 9.37%.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Anheuser-Busch conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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