Weber Inc. Fraud Class Action Lawsuit
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Weber Inc.


The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of those who acquired Weber Inc. (“Weber”) (NYSE: WEBR) Class A common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s August 2021 initial public offering (“IPO” or the “Offering”). Investors have until September 27, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
 
Weber is an outdoor cooking company that sells grills, smokers, grilling accessories, and solid fuel products across the world.
 
On August 6, 2021, the Company filed its prospectus on Form 424B4 with the SEC, which forms part of the Registration Statement. In the IPO, the Company sold approximately 17,857,143 shares of Class A common stock at a price of $14.00 per share. The Company received proceeds of approximately $237.5 million from the Offering, net of underwriting discounts and commissions. The proceeds from the IPO were purportedly to be used to effectuate certain reorganization transactions, for general corporate purposes, and to repay certain debts.
 
On July 25, 2022, before the market opened, 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 declined by $0.95 per share, or approximately 12.65%, from $7.51 per share to close at $6.56 per share on July 25, 2022.
 
On July 29, 2022, the day the suit was filed, Weber shares closed at $6.37 per share.
 
The lawsuit alleges that, throughout the Class Period, the Registration Statement and Defendants made false and/or misleading statements and/or failed to disclose that: (1) Weber was reasonably likely to implement price increases; (2) as a result, consumer demand for Weber’s products was reasonably likely to decrease; (3) due to the resulting inventory buildup, Weber was reasonably likely to run promotions to “enhance retail sell through”; (4) the foregoing would adversely impact Weber’s financial results; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.

 

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