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STZ.US
id: 1501

Constellation Brands (STZ) Wine and Spirits Growth Misrepresentation Case Case Description

W.D. New York
Court
6:25-cv-6107
Case number
04/11/2024
Class period Start
01/08/2025
Class period End
04/21/2025
Lead Plaintiff motion deadline
  • $STZ investors filed a lawsuit against Constellation Brands, alleging the company misled shareholders about its ability to drive growth and profitability in its Wine and Spirits division.
  • On January 8, 2025, Constellation reported weaker-than-expected Q3 2025 results, revealing declining sales and missed growth targets. Following this news, $STZ stock dropped 17%.
  • $STZ investors can join this case to be notified about potential recovery.
Case Details:

Between April 11, 2024, and January 8, 2025, Constellation Brands assured investors that its Wine and Spirits division was on track for growth, highlighting inventory management, sales execution, and marketing investments as key strategies.

However, the company failed to disclose that these efforts were not working. Throughout 2024, sales declined, inventory levels remained high, and retailer demand weakened, especially in lower-priced wines. Despite these issues, Constellation maintained an optimistic outlook.

On January 8, 2025, the company reported a 14% sales decline and a 16.4% drop in shipments, admitting that retailer demand was weaker than expected and inventory challenges persisted.

Following this news, $STZ stock fell 17%.

Based on these events, $STZ investors filed a lawsuit against Constellation Brands, claiming the company:

  • It misled investors about the success of its Wine and Spirits growth strategy.
  • It downplayed the risks of declining demand and ongoing inventory challenges.
Investors believe Constellation misrepresented its ability to grow its Wine and Spirits division.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements, 
Financial Misrepresentation, 
Fraud, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
01/08/2025
Filing date
02/18/2025
Lead Plaintiff Deadline
04/21/2025
Collecting participants…

Constellation Brands Inc Class A

Constellation Brands, Inc., together with its subsidiaries, produces, imports, markets, and sells beer, wine, and spirits in the United States, Canada, Mexico, New Zealand, and Italy. The company p...

    Ticker
    STZ.US
    ISIN
    US21036P1084
    CIK
    0000016918
    Sector
    Consumer Defensive
    Industry
    Beverages - Brewers
    Country
    USA
    Address
    Building 100, Victor, NY, United States, 14564