Boston Beer Co. is being hit with lawsuits from investors unhappy over its management of its seltzer products.
At least three law firms have filed suits alleging that Boston Beer, brewer of Samuel Adams, misrepresented how its seltzer products were selling. Those products, which include Truly Hard Seltzer and Angry Orchard Hard Seltzer, performed below expectations in the quarter ending in June.
After management revised its sales forecast in July, the share price of Boston Beer stock dropped 26% and has continued to decline. It now stands at $526 a share, down about 60% from its peak in April.
Management’s “positive statements about Boston Beer's business, operations, and prospects were materially misleading and/or lacked a reasonable basis,” law firm Robbins Geller Rudman & Dowd LLP said in a statement. Law firms are now trolling for potential plaintiffs among Boston Beer’s investors.