Tostrud Law Group, PC announces an investigation on behalf of Diageo plc (“Diageo” or the “Company”) (NYSE: DEO) investors concerning the Company and its officers’ possible violations of federal securities laws.
On July 23, 2015, The Wall Street Journalreported that the Securities and Exchange Commission (“SEC”) is investigating whether Diageo has been shipping excess inventory to distributors in an effort to boost the liquor company’s results.
On this news, shares of Diageo fell $4.75 per share, or more than 3.90%, to close at $114.91 on July 23, 2015, thereby injuring investors.
Then, on February 19, 2020, the SEC announced that it had settled the claims against Diageo for $5 million. According to the announcement, “employees at Diageo North America (DNA), Diageo’s largest and most profitable subsidiary, pressured distributors to buy products in excess of demand in order to meet internal sales targets in the face of declining market conditions.” Moreover, this “increase in shipments enabled Diageo to meet performance targets and to report higher growth in key performance indicators.”
If you purchased Diageo securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Jon A. Tostrud of Tostrud Law Group, PC by telephone at (310) 278-2600, toll-free at (855) 854-8678, or by email to firstname.lastname@example.org, or visit our website at http://tostrudlaw.com/.
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Tostrud Law Group, PC
Jon A. Tostrud, Esquire
1925 Century Park East, Suite 2100
Los Angeles, CA 90067