The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Constellation Brands, Inc. (“Constellation” or the “Company”) (NYSE: STZ) securities between April 11, 2024 to January 8, 2025, inclusive (the “Class Period”). Constellation investors have until April 21, 2025 to file a lead plaintiff motion.

What Happened?

On January 10, 2025, Constellation released its third quarter fiscal 2025 financial results, revealing a significant decline in net sales, citing “ongoing weaker consumer demand and continued retailer inventory destocking across most price segments in the U.S. wholesale market.”

On this news, Constellation’s stock price fell $37.47, or 17.1%, to close at $181.81 per share on January 10, 2025, thereby injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company had failed to improve mix, inventory and sales execution and investments made in media spend and price promotions as well as adjustments in sales capabilities to support distributor partners had not been as effective as they claimed; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.