SAN DIEGO, Nov. 17, 2022 (GLOBE NEWSWIRE) — The Class: Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Vintage Wine Estates, Inc. (NASDAQ: VWE) securities between October 13, 2021 and September 13, 2022, for violations of the Securities Exchange Act of 1934. Vintage Wine is a vintner company that sells wines and spirits.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Vintage Wine Estates, Inc. Shareholders who want to be appointed lead plaintiff for the class must file their papers by January 13, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: Vintage Wine Estates, Inc. (VWE) Had Material Weaknesses Related to its Inventory Controls and Procedures
According to the complaint, during the class period, defendants failed to disclose to investors: (1) that, due to a material weakness related to its inventory controls and procedures, the Company lacked a reasonable basis to report inventory metrics; (2) that the Company understated its overhead burden in certain quarters, thereby overstating its adjusted EBITDA; and (3) that, as a result, Vintage Wine was reasonably likely to incur significant charges to restate prior reporting.
On September 13, 2022, Vintage Wine announced its financial results for fiscal year 2022. In its press release, the Company stated that it “recorded $19.1 million in non-cash inventory adjustments identified through efforts t[o] improve and strengthen inventory management, processes and reporting.” The Company also stated that “the [fourth] quarter included approximately $6.8 million in overhead burden that was related to the first and second quarter of fiscal 2022, but not material to the respective periods.” On this news, the Company’s share price fell $2.23, or over 40%, to close at $3.30 per share on September 14, 2022.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Vintage Wine Estates, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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