INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Weber Inc. (NYSE: WEBR) Shareholders
NEWTOWN, PA, August 11, 2022 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of Weber Inc. (“Weber” or the “Company”) (NYSE: WEBR) Class A common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with Weber’s August 4, 2021 initial public offering (the “IPO”). The Weber Inc. lawsuit, filed in the U.S. District Court for the Northern District of Illinois, alleges violations of the Securities Act of 1933.
Investors who purchased Weber common stock during the Class Period may move the U.S. District Court for the Northern District of Illinois to appoint them as lead plaintiff, no later than September 27, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who wish to discuss the lead plaintiff selection process should contact Edelson Lechtzin LLP, toll free at 844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed on Edelson Lechtzin LLP’s website at www.edelson-law.com or HERE
Background on the Weber Inc. Securities Class Action
Weber is an outdoor cooking company that sells grills, smokers, grilling accessories, and solid food products across the world.
On August 6, 2021, Weber filed its prospectus on Form 424B4 with the SEC, which forms part of the Registration Statement. Pursuant to the IPO, Weber sold approximately 17.8 million shares of Class A common stock at a price of $14.00 per share, which netted. Weber approximately $237.5 million (less underwriting discounts and commissions).
The Complaint alleges that the Registration Statement contained materially false and/or misleading and statements and omissions, including that: (i) Weber was likely to implement price increases; (ii) as a result, consumer demand for Weber’s products was likely to decrease; (iii) due to the resulting inventory buildup, Weber was likely to run promotions to “enhance retail sell through”; and (iv) the foregoing would negatively impact Weber’s financial results. As a result of the foregoing, Defendants’ representations in the Registration Statement about Weber’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
Before the market opened on July 25, 2022, Weber announced its preliminary third quarter 2022 financial results, which included net sales between $525 million and $530 million. Weber expected to report a net loss, noting that “profitability was negatively impacted by” several factors, including “promotional activity to enhance retail sell through.” Weber also announced that the Company’s Chief Executive Officer, Chris Scherzinger, would be departing. On this news, Weber’s stock price fell $1.21 per share, or 16%, to close at $6.30 per share on July 25, 2022, on unusually heaving trading volume.
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492
Email: [email protected]
Web: www.edelson-law.com