NEW YORK, Aug. 24, 2018 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against National Beverage Corp. (“National Beverage” or the “Company”) (NASDAQ: FIZZ) and certain of its officers. The class action, filed in United States District Court, Southern District of Florida, and docketed under 18-cv-61631, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise acquired National Beverage securities between July 17, 2014 and July 3, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased National Beverage securities between July 17, 2014, and July 3, 2018, both dates inclusive, you have until September 17, 2018, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
National Beverage, through its subsidiaries, develops, produces, markets, and sells a portfolio of flavored beverage products in North America and internationally. The Company offers beverages to the active and health-conscious consumers, including sparkling waters under the LaCroix, LaCroix Cúrate, LaCroix NiCola, and Shasta Sparkling Water brand names. It serves retailers, as well as various up-and-down-the-street accounts through the take-home, convenience, and food-service distribution channels. The Company sells and markets its products through an internal sales force, as well as specialized broker networks.
On May 4, 2017, National Beverage 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.”
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) National Beverage’s sales claims and the supposed underlying “proprietary techniques” lacked a verifiable basis; (ii) National Beverage’s Chairman and Chief Executive Officer (“CEO”), Defendant Nick A. Caporella (“Caporella”), engaged in a pattern of sexual misconduct between 2014 and 2016; and (iii) as a result, National Beverage’s public statements were materially false and misleading at all relevant times.
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 this news, National Beverage’s share price fell $11.91, or 10.56%, to close at $100.84 on December 8, 2017.
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, or 8.87%, 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, that “[t]wo pilots have filed lawsuits alleging sexual harassment . . . 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.
On 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.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 9980