Robbins Arroyo LLP: National Beverage Corp. (FIZZ) Misled Shareholders According to a Recently Filed Class Action
December 06 2016 - 1:41PM
Business Wire
Shareholder rights law firm 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.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/national-beverage-corp
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, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20161206006234/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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