A lawsuit was filed on behalf of investors in Vintage Wine Estates, Inc. (NASDAQ:VWE) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 12/06/2022 -- An investor, who purchased shares of Vintage Wine Estates, Inc. (NASDAQ: VWE), filed a lawsuit over alleged violations of Federal Securities Laws by Vintage Wine Estates, Inc.
Investors who purchased shares of Vintage Wine Estates, Inc. (NASDAQ: VWE) have certain options and for certain investors are short and strict deadlines running. Deadline: January 13, 2022. NASDAQ: VWE investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Incline Willage, NV based Vintage Wine Estates, Inc. produces and sells wines and craft spirits in the United States, Canada, and internationally. On September 13, 2022, after the market hours, Vintage Wine Estates, Inc. announced that certain of the company's previously issued financial statements should no longer be relied upon and should be restated due to the identification of an accounting error.
Vintage Wine Estates, Inc. also announced its fourth quarter and fiscal year 2022 results. Vintage Wine Estates, Inc. revealed that it recorded $19.1 million in non-cash inventory adjustments which were "identified through efforts to improve and strengthen inventory management, processes and reporting." The adjustments included "physical inventory count adjustments of $12.4 million, $3.7 million related to the establishment of inventory reserves and $3.0 million related to the impact of additional remediation efforts." The Company further revealed that it's fourth quarter 2022 loss from operations was $27.7 million, compared to $10.9 million in the prior year quarter, which was due in part to "the $19.1 million non-cash inventory adjustments."
Shares of Vintage Wine Estates, Inc. (NASDAQ: VWE) declined from $11.15 per share on April 21, 2022, to as low as $2.95 per share on September 19, 2022.
The plaintiff claims that between October 13, 2021 and September 13, 2022, the 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; (3) that, as a result of the foregoing, Vintage Wine was reasonably likely to incur significant charges to restate prior reporting; and (4) as a result, Defendants' statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
Those who purchased shares of Vintage Wine Estates, Inc. (NASDAQ: VWE) have certain options and should contact the Shareholders Foundation.
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