Kaskela Law LLC announces that it is investigating Weber Inc. (“Weber” or the “Company”) (NYSE: WEBR) on behalf of the Company’s stockholders.
In August 2021, Weber completed its initial public offering (“IPO”) of common stock, selling over 17 million shares of stock to investors at a price of $14.00 per share.
According to a recently filed shareholder complaint, the Company’s IPO materials as filed with the SEC contained a series of materially false and misleading statements, and omitted to disclose that: (i) Weber was reasonably likely to implement price increases; (ii) as a result, consumer demand for Weber’s products was reasonably likely to decrease; (iii) due to the resulting inventory buildup, Weber was reasonably likely to run promotions to “enhance retail sell through”; and (iv) that the foregoing would adversely impact Weber’s financial results.
On July 25, 2022, Weber issued a press release entitled “Weber Announces Management Transition and Provides Business Update.” Therein the Company disclosed that it had appointed a new CEO, effective immediately, and that its former CEO, Chris Scherzinger, was “departing from his roles on the management team and Board of Directors.” The Company also disclosed preliminary financial and operational results for the second quarter of fiscal 2022, including disappointing net sales of between $525 – $530 million, which it reported “was affected by slower retail traffic, both in-store and online, in all key markets.” Additionally, the Company announced that it was withdrawing its fiscal year 2022 Net Sales guidance. On this news, shares of the Company’s stock fell over 12.5% in value, to close at $6.56 per share on July 25, 2022, on heavy trading volume.
Subsequently, Weber disclosed that it had received a buyout proposal from BDT Capital Partners to acquire all of the outstanding shares of Weber’s stock at a price of $6.25 per share – an over 50% discount from the value of the shares at the time of the IPO.
The investigation seeks to determine whether the members of Weber’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.
Weber stockholders are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by completing the form on this page, to receive additional information about this investigation and their legal rights and options.