Vintage Wine Estates ($VWE) Investor Settlement

The parties have reached an agreement to settle the case, but the terms are still being finalized. You can submit your application now, and it will be processed once claims filing opens.

D. Nevada

Court

2:22-cv-01915

Case number

10/13/2021

Class period Start

02/08/2023

Class period End

Vintage Wine Estates ($VWE) has reached a settlement with investors to resolve claims that the company misrepresented its inventory controls and financial reporting.

Outline

In September 2022, Vintage Wine disclosed nearly $19.1 million in non-cash inventory adjustments, citing efforts to improve its internal reporting processes. The company also admitted it had misallocated $6.8 million in overhead expenses from earlier quarters, resulting in artificially inflated earnings figures. Following the announcement, $VWE stock plunged 40%, wiping out over $130 million in market value, and investors filed a lawsuit.

Timeline
On September 13, 2022 – VWE announces $19.1M in non-cash inventory adjustments and $6.8M in overhead expenses related to earlier quarters.
On September 14, 2022 – $VWE drops 40%, erasing $137 million in market capitalization.
Between late 2022 and 2023 – Investors file a class action lawsuit citing material misstatements tied to inventory and financial controls.
In January 2026 – Vintage Wine reaches a settlement to resolve investor claims.
Background

When Vintage Wine Estates, Inc. ($VWE) transitioned to the public markets, it presented itself as a premier vintner ready for aggressive growth, with a sophisticated omni-channel strategy and a high-margin portfolio of over 40 luxury brands.

At first, investors were sold on the promise of a scalable operating model capable of delivering consistent adjusted EBITDA growth in the booming premium wine segment.

The company emphasized its robust inventory of bulk and bottled spirits, which it valued at over $221 million. This massive asset base was framed as the engine for future revenue, supported by "best-in-class" digital marketing and tasting room traffic. 

However, the company did admit to some "General Risks" in its regulatory filings. Management noted a "material weakness" in internal controls over financial reporting, specifically citing a lack of effective processes for account reconciliations.

In the beginning, they assured the market that third-party consultants had been engaged to remediate these deficiencies and that the issues were being actively managed. But, the reality was far more dire than the general warnings suggested.

The true was that Vintage Wine Estates failed to disclose that it lacked any reasonable basis to report its inventory metrics due to the sheer scale of its internal control failures. The company was systematically understating its overhead burden, which artificially inflated its reported adjusted EBITDA and masked the true cost of its operations.

On September 13, 2022, the company was forced to come clean about its disastrous fiscal year 2022 results, revealing a massive $19.1 million non-cash inventory adjustment required to correct past reporting errors. This "cleanup" included $12.4 million in physical inventory count adjustments and the revelation that $6.8 million in overhead from prior quarters had been misallocated.

The next day, $VWE shares plummeted 40.3% wiping out more than $137 million in market capitalization, devastating investors who had relied on the company’s inflated financial statements.

Shortly after, investors filed a class action lawsuit against Vintage Wine Estates, CEO Patrick Roney, and former and current CFOs Katherine DeVillers and Kristina Johnston. They alleged that the company misled them by issuing false statements about its inventory value and financial health while concealing the true extent of its internal control failures.

What Can Investors Expect Now?

Vintage Wine Estates ($VWE) has reached a settlement with investors to resolve claims that the company misrepresented its inventory controls and financial reporting.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.

Case Type

US Securities Class Action

Case Status

Tentative Settlement

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Negligence,

Omissions

Suspected Party

Directors,

Management,

Service Provider

Security Type

Stocks

Trade Direction

Long

Filing date

11/14/2022

Plaintiffs

Michael F. Salbenblatt

Attorneys

Glancy Prongay & Murray LLP

Defendants

Patrick Roney; Terry Wheatley; Kristina Johnston; Shawn Schiffer

Trades matching type

FIFO

Frequently Asked Questions

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