This stockholder derivative action is brought on behalf of Dutch Bros against certain current and former Company officers and members of the Company’s Board of Directors (the “Board”) for breaches of their fiduciary duties in issuing, causing to be issued, or permitting the issuance of materially false and misleading public statements concerning the Company’s business, operations, and prospects, during the period of March 1, 2022 to May 11, 2022 (the “Relevant Period”)
As alleged in the complaint, the Individual Defendants willfully or recklessly made and/or caused Dutch Bros to make false and misleading statements to the investing public that failed to disclose, inter alia, that: (a) the Company was experiencing increased costs and expenses and supply chain issues; and (b) as a result, the Company was experiencing increased margin pressure and decreased profitability in the first quarter of 2022.
The Individual Defendants also breached their fiduciary duties by causing the Company to fail to maintain adequate internal controls. The Individual Defendants failed to correct and/or caused the Company to fail to correct these false and misleading statements and omissions of material fact, rendering them personally liable to the Company for breaching their fiduciary duties.
Moreover, several of the Individual Defendants further breached their fiduciary duties by engaging in lucrative insider trading of Dutch Bros common stock at artificially inflated rates. These insider sales generated proceeds in excess of $10 million.
To learn more about this action, you are encouraged to contact Joshua Grabar at jgrabar@grabarlaw.com or call 267-507-6085.
