Pomerantz LLP, a New York law firm that pioneered securities class actions, said it is “investigating” whether “Boston Beer and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.” Pomerantz invited investors to contact it to join the class action.
On July 22, Boston Beer reduced its full year 2021 guidance, advising that it expected earnings per share between $18 and $22, down from a prior range of $22 to $26. 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 Sept. 8, 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 Sept. 8, Pomerantz noted.