Starbucks Investors Got Burned and Filed Suit

Starbucks got the order wrong when it revamped its rewards program and global success plan. While the Company told investors these strategies were piping hot, investors were left in the cold when these plans proved to be stale. Investors say executives made baseless claims about the Company’s financial outlook using bad data and unfounded optimism. These investors have filed a class action lawsuit.

According to aggrieved investors, in late 2023, Starbucks’ executives gave investors a positive outlook for the company’s Reinvention Strategy, which included revising the coffee chain’s rewards programs, opening more stores internationally, and a positive financial outlook for U.S. stores. The buzz was short-lived. Just six months later, the Company issued a press release showing dismal financial results and declining global sales.

After learning the truth, investors quickly dumped Starbucks shares, causing the stock to lose 15% of its value overnight. Shareholders are now pursuing a class-action lawsuit to recoup some of their losses.

Join the Lawsuit.