National Beverage Corp.
Robbins Arroyo LLP: National Beverage Corp. (FIZZ) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against National Beverage Corp. (NASDAQGS: FIZZ) in the U.S. District Court for the Central District of California. The complaint is brought on behalf of all purchasers of National Beverage Corp. securities between July 16, 2015 and September 28, 2016, for alleged violations of the Securities Exchange Act of 1934 by National Beverage Corp.’s officers and directors. National Beverage Corp., through its subsidiaries, develops, produces, markets, and sells a portfolio of flavored beverage products primarily in North America.
National Beverage Corp. Accused of Channeling Expenses Through Off the Books Entities
According to the complaint, National Beverage Corp. submitted a series of filings with the U.S. Securities and Exchange Commission which provided the company’s year-end financial results and position and stated that the company’s internal controls and procedures were effective. However, the complaint alleges that National Beverage Corp. officials failed to disclose that the company lacked effective internal controls over financial reporting due, in part, to undisclosed channeling of expenses through off the books entities, and, in part, due to undisclosed material related parties transactions.
On September 28, 2016, Glaucus Research Group reported that a 2014 lawsuit brought by a former marketing director of National Beverage Corp.’s wholly owned subsidiary, Faygo Beverages Inc., alleged that “[the company’s] expenses are run through off the books entities.” The report further stated that a 2015 lawsuit alleged that a National Beverage Corp. employee was physically present at, operated, directed, and managed Maverick Distributing Company, LLC—an independent distributor which was not listed as a subsidiary or related party in any of the company’s filings—which “suggest[s] that FIZZ runs sales through undisclosed related parties.” On this news, National Beverage Corp. shares fell $3.81 per share, or over 8%, to close at $42.67 per share on September 28, 2016.
National Beverage Corp. Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.