CRAFT BREW ALLIANCE, INC. (NASDAQ:BREW) Files An 8-K Other Events
On April 24, 2019, Craft Brew Alliance, Inc. (“the Company”), filed a joint notice with the plaintiffs in Theodore Broomfield v. Kona Brewing Co. LLC, Kona Brew Enterprises, LLP, et al, in the United States District Court for the Northern Division of California, informing the Court that the parties have reached an agreement in principle to settle the litigation, and expect to file an executed settlement agreement with the full terms and conditions of the settlement with the Court in the near future. The settlement is expected to be structured as a nationwide “claims made” settlement covering purchases of specified Kona beers. Under the agreement in principle, the Company would be required to make certain payments to class members and pay specified administrative fees and fees of the plaintiffs’ attorneys. The preliminary settlement will be subject to the Court’s approval. The Company expects to recognize an incremental charge of $4.7 million on a pre-tax basis in the quarter ended March 31, 2019, based on its current estimate of the probable costs of settling the litigation, but it is reasonably possible that the total cost of settling the litigation will exceed current estimates. The Company did not previously record any liabilities with respect to the litigation or include any potential costs in our anticipated financial highlights for 2019 published on March 6, 2019.
Statements made in this report that state the Company’s or management’s beliefs, expectations, or predictions for the future, including the anticipated costs of settling litigation, are forward-looking statements. It is important to note that the Company’s actual results could differ materially from those projected in such forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, including, but not limited to, the Company’s report on Form 10-K for the year ended December 31, 2018. Copies of these documents may be found on the Company’s website, www.craftbrew.com, or obtained by contacting the Company or the SEC. The Company disclaims any obligation to publish updated information with regard to its forward-looking statements or risks related to those statements, except as required by the federal securities laws.
About CRAFT BREW ALLIANCE, INC. (NASDAQ:BREW)
Craft Brew Alliance, Inc. is a craft brewing company that is engaged in brewing, branding and bringing to market American craft beers. The Company operates through two segments: Beer Related operations, which include the brewing operations and related domestic and international beer and cider sales of its Kona, Widmer Brothers, Redhook and Omission beer brands, and Square Mile cider brand, and Pubs operations, which include its approximately five pubs, over four of which are located adjacent to its Beer Related operations, as well as other merchandise sales, and sales of its beers directly to customers. The Company’s portfolio of brands includes the Kona Brewing Company, Widmer Brothers Brewing, Redhook Brewery, Omission Beer and Square Mile Cider Company brand families, along with partner brands Appalachian Mountain Brewery, Cisco Brewers and Resignation Brewery. Its brews its beers using hops, malted barley, wheat, rye and other natural traditional and nontraditional ingredients.
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