Constellation Brands Brass Sued by Shareholder Over Drink Demand

Constellation Brands Inc. leadership overhyped its wine and spirits segment’s growth potential before revealing disappointing financial results that missed its sales performance target, a shareholder lawsuit said.

The alcohol distributor’s share prices slid 17% on Jan. 10 after announcing a 14% net sales decline for that sector in the third quarter of fiscal year 2025, with executives citing demand headwinds and inventory destocking, an investor told the US District Court for the Western District of New York on Monday. It was the stock’s steepest one-day decline in nearly 12 years, according to data compiled by Bloomberg.

Executives and current and ...