La Croix, a prominent American sparkling water brand, has seen massive growth in popularity over the last several years. However, recently, information was released that suggests that the brand’s owner, National Beverage Corp., may have drastically overstated this growth in documents and disclosures presented to investors.
On June 26th, 2018, Fortune Magazine reported that the Securities and Exchange Commission (SEC) has launched an inquiry into the sales metrics provided by National Beverage. The SEC has serious questions about the company’s growth numbers.
Securities regulators are investigating whether or not the company inflated its sales. Currently, the company is being asked to ‘clarify’ how it came to its sales claims. If the company made material misrepresentations to investors, that is a major violation of federal securities law.
National Beverage Corp. Stock Dropped By 16 Percent in 48 Hours
Following the SEC’s announcement, shares of National Beverage Corp. fell sharply. According to CNBC, the company’s stock lost 16 percent of its total value in the first two trading days after the SEC action. This is not surprising, as the SEC is probing the large beverage maker for potential securities law violations. National Beverage Corp. shareholders need to know how to protect their rights.
Do You Need Guidance From an Investor Rights Lawyer?
We are here to help. At Sonn Law Group, our legal team is proud to represent investors nationwide. If you are a National Beverage shareholder who suffered major losses, you have important rights. For immediate assistance with your case, please reach out to our law office to set up a free, no risk initial consultation.
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