RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed in the United States District Court for the Southern District of Florida against National Beverage Corp. (Nasdaq: FIZZ) (“National Beverage”) on behalf of purchasers of National Beverage securities between July 17, 2014 and July 3, 2018, inclusive (the “Class Period”).
Important Deadline Reminder: Investors who purchased National Beverage securities during the Class Period may, no later than September 17, 2018, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this action please visit https://www.ktmc.com/new-cases/national-beverage-corp-2018#join.
According to the complaint, National Beverage, through its subsidiaries, develops, produces, markets, and sells a portfolio of flavored beverage products in North America and internationally. The company offers beverages to the active and health-conscious consumers, including sparkling waters under the LaCroix, LaCroix Cúrate, LaCroix NiCola, and Shasta Sparkling Water brand names. The company sells and markets its products through an internal sales force, as well as specialized broker networks.
On May 4, 2017, National Beverage issued a press release stating that it “employs methods that no other company does in this area—VPO (velocity per outlet) and VPC (velocity per capita).” National Beverage asserted that it “utilize[s] two proprietary techniques to magnify these measure [sic] and this creates growth never before thought possible.”
The complaint alleges that on December 8, 2017, National Beverage issued a press release announcing its financial and operating results for the period ended October 28, 2017. Notwithstanding the company’s representations in its May 2017 press releases with respect to “creat[ing] growth never before thought possible,” analyst Laurent Grandet of Credit Suisse assigned an “underperform” rating to the company’s stock. Grandet noted that National Beverage’s business was driven “almost entirely” by the success of its LaCroix sparkling water brand, the growth trajectory of which was in fact slowing. Following this news, National Beverage’s share price fell $11.91, or 10.56%, to close at $100.84 on December 8, 2017.
Then, on June 26, 2018, The Wall Street Journal published an article entitled, “The SEC Has Had Its Own Questions About LaCroix,” reporting that National Beverage had “declined to provide” the SEC “with requested sales figures to clarify [National Beverage’s] sales claims”, following a letter request from the SEC in January 2018. Following this news, National Beverage’s share price fell $9.75, or 8.87%, to close at $100.19 on June 27, 2018.
Finally, on July 3, 2018, The Wall Street Journal published an article entitled, “Billionaire Behind LaCroix Accused of Improper Touching by Two Pilots.” The article reported, in part, that “[t]wo pilots have filed lawsuits alleging sexual harassment. . . claiming 82-year-old Nick A. Caporella inappropriately touched them on multiple trips while they were flying with him in the cockpit of his business jet” and that “[t]he suits claim the unwanted touching occurred on more than 30 trips from 2014 to 2016.” Following this news, National Beverage’s share price fell $2.90, or 2.64%, over the following two trading days, closing at $107.04 on July 6, 2018.
The complaint alleges that during the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) National Beverage’s sales claims and the supposed underlying “proprietary techniques” lacked a verifiable basis; (ii) National Beverage’s Chairman and Chief Executive Officer, Nick A. Caporella, engaged in a pattern of sexual misconduct between 2014 and 2016; and (iii) as a result, National Beverage’s public statements were materially false and misleading at all relevant times.
If you wish to discuss this securities fraud class action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (888) 299–7706 or (610) 667–7706, or via e-mail at firstname.lastname@example.org.
National Beverage investors may, no later than September 17, 2018, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a 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 affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.