Law firm in shareholder law Robbins+LLP is investigating Weber Inc. (NYSE: WEBR) and its officers and directors to determine whether they violated securities laws or breached fiduciary duties in connection with statements made in anticipation of the IPO (“ IPO”) of the company in August 2021. Weber is an outdoor cooking company that sells grilling products around the world.
If you would like more information about our investigation into the misconduct of Weber Inc., click here.
What this case is about: According to the class action lawsuit filed against the Company and certain of its officers and directors, the defendants proceeded with the Company’s IPO on August 6, 2021, selling nearly 18 million shares at $14.00 l ‘stock. However, the registration statement supporting the IPO was materially untrue and did not indicate that Weber was reasonably likely to implement price increases, which would result in lower demand for its products. . The resulting inventory buildup would then cause Weber to run promotions to “improve retail,” which would negatively impact Weber’s bottom line.
On July 25, 2022, Weber announced its preliminary third quarter 2022 financial results, including net sales of between $525 million and $530 million. The Company expected to report a net loss, noting that “[p]Profitability was negatively impacted by “several factors, including ‘promotional activity to improve retail’. Additionally, Weber announced that Chris Scherzinger is “stepping down” as CEO and director of the company. Upon this news, the Company’s stock price fell $1.21 per share, or 16%, to close at $6.30 per share on July 25, 2022. At the commencement of the class action, shares of the Company were trading as low as $6.25 per share, a drop of nearly 55% from the IPO price of $14 per share.
Next steps: If you acquired Weber Inc. stock as part of the company’s IPO, you have legal options. Please contact Robbins LLP for more information on your rights and remedies.
All representation is done on a contingent fee basis. Shareholders do not pay any fees or expenses.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP are dedicated to helping shareholders recoup losses, improving corporate governance structures and holding leaders together. responsible for their wrongdoings since 2002. To be notified when a class action lawsuit against Weber Inc. settles or to receive free alerts when corporate executives commit wrongdoing, sign up for Stock + Watch today.
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