(NYSE:STZ),
NEW YORK, Feb. 19, 2025 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Delaware on behalf of all persons or entities who purchased or otherwise acquired Constellation Brands, Inc. (“Constellation” or the “Company”) (NYSE: STZ) securities between April 11, 2024 and January 8, 2025, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company's investors under the federal securities laws.
According to the Complaint, Defendants provided investors with material information concerning Constellation's full year 2024 fiscal results and financial outlook for 2025. The Complaint alleges that the outlook for 2025 depended upon Defendants' efforts to improve product mix, inventory, and sales execution in its Wine and Spirits business, specifically focusing efforts within its premium and above brands to drive more consistent growth. The Complaint alleges that these efforts also included investments in media spend and price promotions as well as adjustments in sales capabilities to support distributor partners.
The Complaint further alleges that Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning Constellation's ability to deliver increased profitability, specifically in its Wine and Spirits division. The Complaint alleges that this caused Plaintiff and other shareholders to purchase Constellation's securities at artificially inflated prices.
According to the Complaint, the truth emerged on January 8, 2025 when Defendants issued a press release announcing the Company's third quarter fiscal year 2025 results. The Complaint further alleges that in pertinent part, Defendants presented a significant miss on sales performance in the Beer segment and an even steeper miss for the Wine & Spirits.
According to the Complaint, investors and analysts reacted immediately to Constellation's revelation. The Complaint alleges that the price of Constellation's common stock declined dramatically, from a closing market price of $219.28 per share on January 8, 2025 to $181.81 per share on January 10, 2025.
Investors who purchased or otherwise acquired shares of Constellation should contact the Firm prior to the April 21, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
