#United States #New York #securities lawsuit #Constellation Brands #STZ

Legal Action Against Constellation Brands

On March 12, 2025, Levi & Korsinsky, LLP announced a class action lawsuit against Constellation Brands, Inc. (NYSE: STZ) aimed at investors who have allegedly suffered losses due to securities fraud. This suit covers the period from April 11, 2024, to January 8, 2025, during which the company's misleading information is said to have adversely affected shareholders.

Allegations

The complaint highlights that Constellation Brands allegedly provided false information regarding its fiscal year 2024 results and its outlook for 2025. Much of the inaccurate data stemmed from the company's purported focus on optimizing its product mix, inventory management, and sales execution, especially within its Wine and Spirits sector. Leaders in the company claimed to have boosted investments in media advertising and price promotions to support distributor partners, seeking consistent growth in premium and above segments.

However, the reality seemed starkly different. On January 8, 2025, the company released dismal figures for its third quarter, revealing a major shortfall in sales for both its Beer and Wine & Spirits divisions. Following this revelation, Constellation's stock price plummeted from $219.28 per share to $181.81 in just two days, illustrating the financial damage to its investors.

Next Steps for Investors

Investors who experienced losses during this timeframe are encouraged to act promptly. The deadline to request the Court to appoint a lead plaintiff in this case is April 21, 2025. It's important to note that even those who do not wish to serve as lead plaintiffs can still participate in any recovery resulting from the lawsuit.

Notably, there are no upfront costs to class members involved in the case. If you qualify, you may receive compensation without paying out of pocket. This is crucial for investors looking to recoup their losses without incurring further risk.

Why Choose Levi & Korsinsky?

Levi & Korsinsky, LLP brings a robust track record of advocating for shareholders, having secured hundreds of millions on behalf of clients over the past 20 years. Recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, the firm specializes in complex securities litigation, supported by a dedicated team of over 70 professionals.

For more information, affected investors can reach out to Levi & Korsinsky. Joseph E. Levi, Esq., is available at (212) 363-7500 or via email at [email protected], offering guidance on the steps to take moving forward.

Conclusion

As this situation continues to unfold, investors should stay informed and not hesitate to seek legal counsel if they believe they are entitled to compensation. The Constellation Brands lawsuit serves as a reminder of the securities law landscape's complexities and the critical nature of timely actions by investors to protect their interests.