BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Anheuser-Busch InBev SA/NV (“Anheuser-Busch” or the “Company”) (NYSE: BUD) American Depository Shares (“ADSs”) between March 1, 2018 and October 24, 2018, inclusive (the “Class Period”). Anheuser-Busch investors have until August 20, 2019 to file a lead plaintiff motion.
Investors suffering losses on their Anheuser-Busch investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On October 25, 2018, the Company cut its dividend by 50% to “accelerate deleveraging toward [its] optimal capital structure of around 2x net debt to EBIDTA ratio.” During a conference call on this same day with investors and analysts, the Company’s Chief Financial and Solutions Officer reaffirmed the need to cut the dividend due to “currency volatility.”
On this news, the Company’s ADS price fell $7.71, or more than 9%, to close at $74.54 on October 25, 2018, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Defendants’ cost cutting measures had largely run their course; (2) that the devaluation of key emerging market currencies and input cost inflation was having a material adverse effect on the Company’s margins, EBITDA and profitability; (3) that Anheuser-Busch had been experiencing less than expected growth and profits in certain key markets; (4) that Anheuser-Busch was not going to be able to maintain its then current dividend and still meet its deleveraging targets; (5) that Anheuser-Busch was at risk of having its credit ratings downgraded; (6) that, as a result of the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company’s dividend growth, its cost synergies, its liquidity, and Defendants’ then current efforts to deleverage Anheuser-Busch’s balance sheet; (7) that the liquidity and working capital disclosures in filings Anheuser-Busch made with the SEC were materially false and misleading; (8) that the risk factor disclosures in filings made Anheuser-Busch with the SEC were materially false and misleading; (9) that the representations about Anheuser-Busch’s disclosure controls in filings the Company made with the SEC were materially false and misleading; (10) that the certifications issued by its Chief Executive Officer and its Chief Financial and Solutions Officer on Anheuser-Busch’s disclosure controls and internal controls over financial reporting were materially false and misleading; and (11) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased shares of Anheuser-Busch, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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