Starbucks Sued Over Stock Drop on ‘Disappointing’ Earnings (1)

Starbucks Corp. earnings for the second quarter of fiscal year 2024 belied earlier positive statements about the company’s financial outlook, sending its stock price down 16%, an investor says in a proposed class action.

Starbucks and two of its executives “created the false impression that they possessed reliable information pertaining to the Company’s projected revenue outlook and anticipated growth,” and minimized certain risks, shareholder Charles Garbaccio says. He filed his complaint Wednesday in the US District Court for the Western District of Washington.

The coffeehouse chain’s growth-focused “Reinvention” plan “was ill equipped to handle the existing macro uncertainty and competition, ...