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VWE.US
id: 458
Vintage Wine (VWE) financial statement issues Case
D. Nevada
Court2:22-cv-01915
Case number10/13/2021
Class period Start09/13/2022
Class period EndOn September 13, 2022, Vintage Wine (VWE) reported its financial results and stated in its press release that it “recorded $19.1 million in non-cash inventory adjustments identified through efforts to improve and strengthen inventory management, processes, and reporting.”
The Company also disclosed that “the fourth quarter included approximately $6.8 million in overhead burden that was related to the first and second quarter of fiscal 2022, but not material to the respective periods.”
On this news, the VWE stock dropped 40% on September 14, 2022, and the Company lost $137 million of its capitalization, seriously damaging investors.
Now, Investors have all reasons to suspect that the Company breached their rights by not properly disclosing and guiding shareholders regarding material facts, specifically:
- that, due to a material weakness related to its inventory controls and procedures, the Company lacked a reasonable basis to report inventory metrics;
- that the Company understated its overhead burden in certain quarters, thereby overstating its adjusted EBITDA;
- Vintage Wine was reasonably likely to incur significant charges to restate prior reporting.
Case Status
Motion to dismiss denied
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Negligence,
Omissions
Suspected Party
Directors,
Management,
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
09/13/2022
Filing date
11/14/2022