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BROS.US
id: 593, Created by Stan Vick, Scout
Dutch Bros Inc. (BROS) Misleading Case
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S.D. New York
Court23-CV-01794
Case number- Dutch Bros Inc. (BROS) released poor financial results contrary to previous financial representations.
- Dutch Bros’ share price fell 26.9%, thereby injuring investors.
- Investors suspect Dutch Bros Inc. (BROS) & its Leaders of multiple financial misrepresentations.
On May 11, 2022, Dutch Bros Inc. (BROS) announced poor financial results for Q1 2022. Therein, the Company reported:
- a net loss of $16.3 million, compared to a net loss of $4.8 million for Q1 2021.
- an adjusted net loss of $2.5 million (a loss of $0.02 per share), which fell below the Street’s estimated earnings of $0.01 per share.
Company's CEO Ricci explained: “we did not perceive the speed and magnitude of cost escalation within the quarter. Dairy, for example, which makes up 28% of our commodity basket, rose almost 25% in Q1.”
On this news, Dutch Bros’ share price fell 26.9%, thereby injuring investors.
Going back, on March 1, 2022, Dutch Bros the conference Company's CFO and CEO made numerous statements reassuring investors that the Company’s first quarter 2022 results would be positive, and in particular that the Company’s margins were healthy. For example, Jonathan “Joth” Ricci stated that, while Dutch Bros is “not immune to margin pressures,” the Company was “managing it appropriately” and that “we are feeling good as we enter ‘22 with the trajectory of our margins, given everything going on.” Compay's CFO Charles L. Jemley similarly stated “we’re just not feeling compression in margins.”
Taking all representations and consequent results into account, Investors have grounds to suspect that the Company and its Leaders made multiple financial misrepresentations that in turn led to damages for shareholders.
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Negligence,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
11 May 2022
Filing date
01 March 2023
Lead Plaintiff Deadline
01 May 2023