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VWE.US
id: 458

Vintage Wine (VWE) financial statement issues Case

D. Nevada
Court
On 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
Attorney Investigation
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
13 September 2022
Collecting participants…

Vintage Wine Estates Inc

Vintage Wine Estates, Inc. produces and sells wines and spirits in the United States, Canada, and internationally. The company offers its products under the brands Bar Dog, B.R. Cohn, Cameron Hughe...

    Ticker
    VWE.US
    ISIN
    US92747V1061
    CIK
    1834045
    Sector
    Consumer Defensive
    Industry
    Beverages - Wineries & Distilleries
    Country
    USA
    Address
    937 Tahoe Boulevard, Incline Village, NV, United States, 89451