Weber Inc. (WEBR) Misled Investors in Connection with its Initial Public Offering
A shareholder filed a class action on behalf of all persons or entities that purchased or otherwise acquired Weber Inc. (NYSE: WEBR) securities in connection with the Company’s August 2021 initial public offering (“IPO”), for violations of the Securities Act of 1933. Weber is an outdoor cooking company that sells grilling products across the world.
According to the complaint, defendants held the Company’s IPO on August 6, 2021, selling almost 18 million shares at $14.00 per share. However, the Registration Statement in support of the IPO was materially false and failed to state that Weber was reasonably likely to implement price increases, which would result in decreased demand for their products. The resulting inventory buildup would then result in Weber running promotions to “enhance retail sell through,” which would adversely impact Weber’s financial results.
On July 25, 2022, Weber announced its preliminary third quarter 2022 financial results, including net sales between $525 million and $530 million. The Company 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 the Company. On this news, the Company’s stock price fell $1.21 per share, or 16%, to close at $6.30 per share on July 25, 2022. By the commencement of the class action, the Company’s stock was trading as low as $6.25 per share, a nearly 55% decline from the $14 per share IPO price.
Next Steps: If you acquired shares of Weber Inc. pursuant to the Company’s IPO, you have until September 27, 2022, to ask the court to appoint you lead plaintiff for the class. 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.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.