When it comes to Wall Street, not meeting earnings expectations isn’t a good thing, but it rarely leads to lawsuits. In this case, Starbucks is being sued for presenting an overly rosy picture of the company’s financial position last November.
According to Restaurant Business, Starbucks executives may have misled investors by making unrealistic projections on sales and earnings.
A shareholder filed the class-action lawsuit in federal court Wednesday. The lawsuit covers the period from Nov. 2, 2023, when the Seattle-based company announced its earnings projections for 2024, to April 30, when those projections fell well short of expectations.
The company lowered its full-year projections, including a 4% decline in
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