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Investors are suing Boston Beer Co. for misrepresenting the sales performance of its seltzer product line, which includes Angry Orchard Hard Seltzer and Truly Hard Seltzer.
At least three law firms have sued Boston Beer.
The number of lawsuits is expected to increase as law firms are now searching for potential plaintiffs to represent among Boston Beer’s investors.
Among the law firms was Robbins Geller Rudman & Dowd LLP, which said that management’s positive statements about its business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
The seltzer products performed below expectations in the quarter ending in June, prompting management to revise its sales forecast in July.
Consequently, the share price of Boston Beer stock plunged 26 percent and has continued to decline and is now down about 60 percent from its peak in April.
It now stands at $526 a share.
