The investigation concerns whether Boston Beer and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On July 22, 2021, Boston Beer reduced its full year 2021 guidance, advising that it expected earnings per share between $18.00 and $22.00, down from a prior range of $22.00 to $26.00. The Company 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.”
On this news, Boston Beer’s stock price fell $246.54 per share, or 26%, to close at $701.00 per share on July 12, 2021.
Then, on September 8, 2021, Boston Beer announced that it was withdrawing its 2021 financial guidance issued on July 22, 2021 as a result of a decrease in demand for its hard seltzer products. The Company further disclosed that it expects to incur hard seltzer-related inventory write-offs, shortfall fees payable to third-party brewers, and other costs associated with the drop in demand during the remainder of fiscal year 2021.
On this news, Boston Beer’s stock price fell $21.09 per share, or 3.77%, to close at $538.31 per share on September 8, 2021.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980