SAN DIEGO, August 2, 2022 /PRNewswire/ — The law firm of Robbins Geller Rudmann & Dowd LLP announces that purchasers or acquirers of Class A common stock of Weber Inc. (NYSE: WEBR) pursuant to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with Weber August 4, 2021 initial public offering (the “IPO”) have until September 27, 2022 to seek appointment as lead applicant in the Weber class action. Subtitle Michalsky v. Weber Inc.No. 22-cv-03966 (ND Ill.), the Weber The class action charges Weber, some of its key officers and directors, and IPO underwriters with violations of the Securities Act of 1933.
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CASE ALLEGATIONS: Weber is an outdoor cooking company that sells grills, smokers, grilling accessories and solid fuel products worldwide. In the IPO, Weber sold approximately 17.8 million shares of Class A common stock at a price of $14.00 per share. Weber received proceeds of approximately $237.5 million IPO, net of discounts and subscription fees.
The Weber The class action alleges that the IPO registration statement was materially false and misleading and failed to state that: (i) Weber was reasonably likely to implement price increases; (ii) as a result, consumer demand for Weber’s products was reasonably likely to decline; (iii) due to the resulting inventory buildup, Weber was reasonably likely to run promotions to “enhance retail”; (iv) the foregoing would negatively impact Weber’s financial results; and (v) as a result, defendants’ positive statements about Weber’s business, operations and prospects were materially misleading and/or lacked reasonable basis.
On July 25, 2022Weber announced its preliminary financial results for the third quarter of 2022, including net sales between $525 million and $530 million. Weber expected to report a net loss, noting that “[p]Profitability was negatively impacted by “several factors, including” promotional activity to improve retail. Chris Scherzinger “steps away” from his role as CEO and director of Weber. At this news, Weber’s stock price fell about 16%.
From the start of the Weber class action lawsuit, Weber shares were trading as low as $6.25 per share, a drop of almost 55% compared to the $14 IPO price per share.
THE PRINCIPAL APPLICANT PROCESS: The Private Securities Litigation Reform Act of 1995 permits any purchaser or acquirer of Class A common stock of Weber pursuant to the registration statement issued in connection with the IPO to seek appointment as lead plaintiff in the Weber class action. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class that is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members by directing the Weber class action. The main plaintiff can select a law firm of his choice to plead Weber class action. An investor’s ability to participate in any potential future upturn in the Weber the class action does not depend on the status of principal plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm representing investors in securities class actions. Robbins Geller’s attorneys have secured many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Dry. Dispute. The 2021 ISS Securities Class Action Services Top 50 report ranked Robbins Geller first for recovering nearly $1.9 billion for investors last year, more than triple the amount recovered by any other company from securities plaintiffs. Please visit the following page for more information:
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