Weber Inc.

Investigation
07/25/2022

Initial Lawsuit
07/29/2022

Lawsuit Progression
09/27/2022

Investigation

Public Offering Date
August 6, 2021
Proposed Claim
Securities Violation

Did Weber Inc. mislead investors regarding its demand and guidance for the year 2022? Was the company’s IPO a false representation of its prospects and financials?

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We update this post regularly.

Main Event

Unexpected Changes?

07/25/2022

Company Statement

Weber announces the departure of its CEO Chris Scherzinger along with its Q3 2022 financial results.

Weber reports lower than expected results “affected by slower retail traffic, both in-store and online, in all key markets, as well as continued foreign currency devaluations that impact our reported results.”

“Management believes that the slower retail traffic patterns are the result of pressured consumer shopping behaviors globally, due to rising inflation, supply chain constraints, fuel prices, and geopolitical uncertainty. The Company expects these market headwinds to continue into the fiscal fourth quarter of 2022.” As a result, Weber withdrew its guidance for the fiscal year.

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close	Previous close	Price variation	Percentage variation
$6.56	$7.51	$-0.95	-12.65%

See more on Factual Timeline

Initial Lawsuit

First Complaint - 07/29/2022

A Weber Inc. investor filed a securities class action lawsuit on behalf of persons and entities that purchased or otherwise acquired Weber Class A common stock pursuant and/or traceable to the registration statement and prospectus issued in connection with the August 2021 initial public offering (IPO).

Filing Date
07/29/2022
Public Offering Date
08/06/2021
Transgression
Securities Violation
Filing Firms
Glancy Prongay & Murray LLP
Miller Law LLC
Case Title
Michalski v. Weber Inc. et al
Docket Number
1:22-cv-03966
Court
Illinois Northern District Court
Free File
Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:

(1) that Weber was reasonably likely to implement price increases;
(2) that, as a result, consumer demand for Weber’s products was reasonably likely to decrease;
(3) that, due to the resulting inventory buildup, Weber was reasonably likely to run promotions to “enhance retail sellthrough”;
(4) that the foregoing would adversely impact Weber’s financial results; and
(5) that, as a result of the foregoing, the defendants’ positive statements about the company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.