SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Weber Inc. (NYSE: WEBR) Class A common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with Weber’s August 4, 2021 initial public offering (the “IPO”) have until September 27, 2022 to seek appointment as lead plaintiff in the Weber class action lawsuit. Captioned Michalski v. Weber Inc., No. 22-cv-03966 (N.D. Ill.), the Weber class action lawsuit charges Weber, certain of its top executives and directors, and the IPO’s underwriters with violations of the Securities Act of 1933.
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CASE ALLEGATIONS: Weber is an outdoor cooking company that sells grills, smokers, grilling accessories, and solid fuel products across the world. In the IPO, Weber sold approximately 17.8 million shares of Class A common stock at a price of $14.00 per share. Weber received proceeds of approximately $237.5 million from the IPO, net of underwriting discounts and commissions.
The Weber class action lawsuit alleges that the IPO’s Registration Statement was materially false and misleading and omitted to state that: (i) Weber was reasonably likely to implement price increases; (ii) as a result, consumer demand for Weber’s products was reasonably likely to decrease; (iii) due to the resulting inventory buildup, Weber was reasonably likely to run promotions to “enhance retail sell through”; (iv) the foregoing would adversely impact Weber’s financial results; and (v) thus, defendants’ positive statements about Weber’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On July 25, 2022, Weber announced its preliminary third quarter 2022 financial results, including net sales between $525 million and $530 million. Weber 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 “is departing” from his roles as Chief Executive Officer and director of Weber. On this news, Weber’s stock price fell by approximately 16%.
By the commencement of the Weber class action lawsuit, Weber stock was trading as low as $6.25 per share, a nearly 55% decline from the $14 per share IPO price.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any purchaser or acquirer of Weber Class A common stock pursuant and/or traceable to the Registration Statement issued in connection with the IPO to seek appointment as lead plaintiff in the Weber class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Weber class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Weber class action lawsuit. An investor’s ability to share in any potential future recovery of the Weber class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud, antitrust, breach of fiduciary duty, consumer fraud, and privacy cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world, and the Firm’s attorneys have obtained many of the largest securities, antitrust, consumer, and privacy class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
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