Anheuser-Busch InBev SA/NV

On October 25, 2018, the Company cut its dividend by 50% to “accelerate deleveraging toward [its] optimal capital structure of around 2x net debt to EBIDTA ratio.” During a conference call on this same day with investors and analysts, the Company’s Chief Financial and Solutions Officer reaffirmed the need to cut the dividend due to “currency volatility.”

On this news, the Company’s ADS price fell $7.71, or more than 9%, to close at $74.54 on October 25, 2018, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Defendants’ cost cutting measures had largely run their course; (2) that the devaluation of key emerging market currencies and input cost inflation was having a material adverse effect on the Company’s margins, EBITDA and profitability; (3) that Anheuser-Busch had been experiencing less than expected growth and profits in certain key markets; (4) that Anheuser-Busch was not going to be able to maintain its then current dividend and still meet its deleveraging targets; (5) that Anheuser-Busch was at risk of having its credit ratings downgraded; (6) that, as a result of the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company’s dividend growth, its cost synergies, its liquidity, and Defendants’ then current efforts to deleverage Anheuser-Busch’s balance sheet; (7) that the liquidity and working capital disclosures in filings Anheuser-Busch made with the SEC were materially false and misleading; (8) that the risk factor disclosures in filings made Anheuser-Busch with the SEC were materially false and misleading; (9) that the representations about Anheuser-Busch’s disclosure controls in filings the Company made with the SEC were materially false and misleading; (10) that the certifications issued by its Chief Executive Officer and its Chief Financial and Solutions Officer on Anheuser-Busch’s disclosure controls and internal controls over financial reporting were materially false and misleading; and (11) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.