NEW YORK, Oct. 06, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in National Beverage Corp. (“National Beverage” or the “Company”) (NASDAQ: FIZZ ) of the December 5, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased National Beverage securities between July 16, 2015 and September 28, 2016 (the “Class Period”). The case, Dermody v. National Beverage Corp. et al , No. 2:16-cv-07487 was filed on October 6, 2016.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failed to disclose that: (1) National Beverage lacked effective internal controls over financial reporting due to undisclosed channeling of expenses through off the books entities and undisclosed material related parties transactions; and (2) as a result, National Beverage’s statements about its business, operations and prospects were materially false and misleading and/or lacked a reasonable basis.
Specifically, the lawsuit alleges that on September 28, 2016, Glaucus Research Group published a report on National Beverage stating that based on a 2014 lawsuit brought by a former marketing director of the Company’s wholly owned subsidiary, Faygo Beverages, National Beverage’s “expenses are run through off the books entities.” In addition, the report states that a 2015 lawsuit alleges that a Company employee was physically present at, operated, directed and managed an independent distributor, Maverick Distributing Company, which is 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’s share price fell from $46.48 per share on September 27, 2016 to a closing price of $42.67 on September 28, 2016—a $3.81 or a 8.20% drop.
Request more information now by clicking here: www.faruqilaw.com/FIZZ . There is no cost or obligation to you.
Take Action
If you invested in National Beverage common stock or options between July 16, 2015 and September 28, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/FIZZ . You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com . Faruqi & Faruqi, LLP also encourages anyone with information regarding National Beverage’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. rgonnello@faruqilaw.com Telephone: (877) 247-4292 or (212) 983-9330
