SHAREHOLDER ALERT: Berger Montague Advises Investors That A Securities Fraud Class Action Lawsuit Was Filed Against VINTAGE WINE ESTATES, INC. (NASDAQ:VWE); Lead Plaintiff Deadline is January 13, 2023
PHILADELPHIA, PA / ACCESSWIRE / NOVEMBER 30, 2022 / Berger Montague advises investors that a securities fraud class action lawsuit has been filed against ("Vintage Wine Estates") (NASDAQ:VWE) on behalf of those who purchased publicly traded Vintage Wine Estates securities between October 13, 2021 and September 13, 2022 (the "Class Period").
Investor Deadline: Investors who purchased or acquired Vintage Wine Estates securities during the Class Period may, no later than January 13, 2023, 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 Berger Montague: James Maro at [email protected] or (215) 875-3093, or Andrew Abramowitz at [email protected] or (215) 875-3015 or visit: https://investigations.bergermontague.com/vintage-wine-estates-inc/
Vintage Wine Estates sells wine and spirits and has over 60 wine and spirits brands totaling around 3 million cases annually, making it the 14th largest wine corporation in the United States.
On September 13, 2022, Vintage Wine Estates announced disappointing financial results for fiscal year 2022 and disclosed that figures contained in previous public statements and SEC filings were inaccurate by a wide margin. The company disclosed that it "recorded $19.1 million in non-cash inventory adjustments identified through efforts t[o] improve and strengthen inventory management, processes and reporting." Vintage Wine Estates further disclosed that "the [fourth] quarter included approximately $6.8 million in overhead burden that was related to the first and second quarter of fiscal 2022, but not material to the respective periods."
Following this news, Vintage Wine Estates' share price fell 40.3%, to close at $3.30 per share on September 14, 2022.
The complaint alleges that throughout the Class Period, the defendants failed to disclose to investors that: (1) material weaknesses relating to inventory controls and procedures substantially undermined the reliability of Vintage Wine Estates' inventory metrics; (2) Vintage Wine Estates repeatedly understated its overhead, and thus falsely inflated its adjusted EBITDA; (3) because of these issues, Vintage Wine Estates was likely to incur significant charges to restate prior reporting; and (4) the defendant's positive statements about Vintage Wine Estates' 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. 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.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
James Maro, Senior Counsel
Andrew Abramowitz, Senior Counsel
SOURCE: Berger Montague