Shareholder rights law firm Robbins LLP is investigating Weber Inc. (NYSE: WEBR) and its officers and directors to determine whether they violated securities laws or breached fiduciary duties in connection with statements made in anticipation of the Company's August 2021 initial public offering ("IPO"). Weber is an outdoor cooking company that sells grilling products across the world.
If you would like more information about our investigation of Weber Inc.'s misconduct, click here.
What is this Case About: According to the class action complaint filed against the Company and certain of its officers and directors, 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 legal options. Please contact Robbins LLP for more information about your rights and remedies.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
Shareholder Information Form
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 Weber Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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