Class action suit claims LaCroix producer misrepresented company to investors

By Chandra Lye | Jul 25, 2018

MIAMI – A class action lawsuit recently filed against National Beverage Corp., Nick A. Caporella and George R. Bracken claims the company misrepresented its financial health to shareholders.

The suit filed July 17 by Thomas W. Luczak in the U.S. District Court for the Southern District of Florida calls for a jury trial to decide the case. The federal securities class action lawsuit was filed on behalf of those who purchased or acquired National Beverage Securities between July 17, 2014 and July 3, 2018. 

“Throughout the class period, defendants made materially false and misleading statements regarding the company’s business, operational and compliance policies,” Luczak stated in the filing

National Beverage Corp., sells drinks marketed towards active and health conscious consumers, the filing noted. This includes brand names such as LaCroix, LaCroix Curate, LaCroix NiCola and Shasta Sparkling Water.

According to the filing documents, the company made claims about the health of its financial state in the spring of 2017. However, as of October it was clear the company was struggling. Analysts gave it underperform status and others recommended investors sell. As a result of the news, shares fell over 10 percent.

In June 2018, the company’s shares fell again following a news story that indicated they failed to provide the Securities and Exchange Commission (SEC) with sales figures to backup the claims they made in the spring of 2017.

Another news story that broke in July 2018 involved sexual harassment claims against National Beverage’s CEO/Chairman Nick Caporella. Shares in the company fell another 2 percent.

Luczak is claiming damages that occurred as a result of the individual defendants withholding information.

“Because of their positions with the company, and their access to material information available to them but not to the public, the individual defendants knew that the adverse facts specified herein had not been disclosed to and were being concealed from the public, and that the positive representations being made were then materially false and misleading,” the filing said.

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