Shareholder rights law firm Robbins LLP announces that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired The Boston Beer Company, Inc. (NYSE: SAM) securities between April 22, 2021 and September 8, 2021 for violations of the Securities Exchange Act of 1934. Boston Beer is a high-end alcoholic beverage company.
If you suffered a loss due to Boston Beer Company, Inc.'s misconduct, click here.
The Boston Beer Company, Inc. (SAM) Failed to Disclose Deteriorating Sales, Inventory Write-offs, and Shortfall Fees
According to the complaint, on April 22, 2021, Boston Beer announced first quarter 2021 financial results. In so doing, the Company estimated earnings per share between $22.00 and $26.00, an increase from its previously communicated range of between $20.00 and $24.00.
On July 22, 2021, Boston Beer reduced its full year 2021 guidance, citing softer-than-expected sales in the hard seltzer category and overall beer industry and stating that it had "overestimated the growth of the hard seltzer category in the second quarter." Specifically, the Company estimated earnings per share between $18.00 and $22.00, a decrease from the previously reported estimate of between $22.00 and $26.00. When news of this came out, the stock fell 26% on July 23, 2021. Then, on September 8, 2021, the Company withdrew its 2021 financial guidance, citing decelerating sales of hard seltzer products and that it "expects to incur hard seltzer-related inventory write-offs, shortfall fees payable to 3rd party brewers, and other costs" for the remainder of fiscal 2021. The stock fell again on this news.
Throughout the class period, defendants failed to disclose to investors that: (i) Boston Beer's hard seltzer sales were deteriorating; (ii) as a result, Boston Beer was reasonably likely to incur inventory write-offs and shortfall fees payable to third party brewers; and (iii) therefore, Boston Beer's financial results would be adversely impacted.
If you purchased shares of The Boston Beer Company Inc. (SAM) between April 22, 2021 and September 8, 2021, you have until November 15, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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