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Oklahoma City, OK (July 20, 2018) – On July 17, 2018, a securities class action lawsuit was filed in the United States District Court for the Southern District of Florida against National Beverage Corp. (NASDAQ: FIZZ). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is July 17, 2014 through July 3, 2018. More specifically, this litigation was filed because on May 4, 2017, the Company issued a press release stating that it “employs methods that no other company does in this area—VPO (velocity per outlet) and VPC (velocity per capita).” National Beverage asserted that it “utilize[s] two proprietary techniques to magnify these measures and this creates growth never before thought possible.” On May 5, 2017, National Beverage issued a second press release, stating that “[o]ur impressive VPO calculator . . . is flashing solid green numbers as we bring FY2017 to a close.”
Then, on December 8, 2017, National Beverage issued a press release announcing its financial and operating results for the period ended October 28, 2017. Notwithstanding the Company’s representations in its May 2017 press releases with respect to “creat[ing] growth never before thought possible,” analyst Laurent Grandet of Credit Suisse assigned an “underperform” rating to the Company’s stock. Grandet noted that National Beverage’s business was driven “almost entirely” by the success of its LaCroix sparkling water brand, the growth trajectory of which was in fact slowing. That same day, Maxim analyst Anthony Vendetti reiterated a “sell” recommendation for National Beverage stock, noting that its “numerous weak brands and opaque financial reporting” made its sale “highly unlikely.”
On June 26, 2018, the Wall Street Journal published an article entitled “The SEC Has Had Its Own Questions About LaCroix”, reporting that National Beverage had “declined to provide” the SEC “with requested sales figures to clarify [National Beverage’s] sales claims”, following a letter request from the SEC in January 2018. On this news, National Beverage’s share price fell $9.75, to close at $100.19 on June 27, 2018.
Then, on July 3, 2018, the Wall Street Journal published an article entitled “Billionaire Behind LaCroix Accused of Improper Touching by Two Pilots.” The article reported, in part, the lawsuits filed by two pilots alleging sexual harassment and claiming 82-year-old Nick A. Caporella inappropriately touched them on multiple trips while they were flying with him in the cockpit of his business jet and that “[t]he suits claim the unwanted touching occurred on more than 30 trips from 2014 to 2016.” Following this news, National Beverage’s share price fell $2.90, or 2.64%, over the following two trading days, closing at $107.04 on July 6, 2018.
Plaintiff seeks to recover damages on behalf of all National Beverage Corp. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, September 17, 2018 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org