The lawsuits argue that this decline harmed investors who relied on the company’s allegedly misleading statements.
Leadership Shake-Up
The legal challenges follow the abrupt departure of CEO Laxman Narasimhan in 2024 after a 14-month tenure marked by declining stock prices and slowing global sales. Despite these challenges, Starbucks’ stock has since rebounded, closing at $100.70 on Wednesday, well above the lows cited in the lawsuits.
Broader Implications
These lawsuits underscore shareholder dissatisfaction with Starbucks’ handling of its growth strategy during a challenging economic period. The outcomes could have lasting implications for corporate governance and disclosure practices at the global coffee giant.
