WEBER INC. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired Weber Inc. (“Weber” or the “Company”) (NYSE: WEBR) common stock in connection with the Company’s August 2021 IPO. The lawsuit seeks to recover Weber shareholders’ investment losses.
If you purchased common stock in Weber in connection with the Company’s August 2021 IPO, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
Weber is an outdoor cooking company that sells grills, smokers, grilling accessories, and solid fuel products across the world.
On August 6, 2021, the Company filed its prospectus on Form 424B4 with the SEC, which forms part of the Registration Statement. In the IPO, the Company sold approximately 17,857,143 shares of Class A common stock at a price of $14.00 per share. The Company received proceeds of approximately $237.5 million from the Offering, net of underwriting discounts and commissions. The proceeds from the IPO were purportedly to be used to effectuate certain reorganization transactions, for general corporate purposes, and to repay certain debts.
Plaintiff alleges that Defendants’ statements in the Registration Statement were materially false and misleading when made because: (1) Weber was reasonably likely to implement price increases; (2) as a result, consumer demand for Weber’s products was reasonably likely to decrease; (3) due to the resulting inventory buildup, Weber was reasonably likely to run promotions to “enhance retail sell through”; and (4) the foregoing would adversely impact Weber’s financial results.
On July 25, 2022, before the market opened, Weber announced its preliminary third quarter 2022 financial results, including net sales between $525 million and $530 million. The Company expected to report a net loss, noting that “[p]rofitability was negatively impacted by” several factors, including “promotional activity to enhance retail sell through.” Additionally, Weber announced that Chris Scherzinger was “departing” from his roles as Chief Executive Officer and director of the Company.
On this news, the Company’s stock price fell $0.95 per share to close at $6.56 per share on July 25, 2022.
Since the IPO, the price of Weber’s stock has fallen over 55%, closing as low as $6.25 per share on July 26, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than September 27, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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