Dutch Bros Inc. (BROS) Misleading Case

S.D. New York

Court

23-CV-01794

Case number

01 May 2023

Lead Plaintiff motion deadline

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.

Case Status

Motion to dismiss

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

Dutch Bros Inc. (BROS) Misleading Case

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