Craft Brew Alliance

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Ademi & O’Reilly, LLP is investigating Craft Brew (Nasdaq: BREW) for possible breaches of fiduciary duty and other violations of the law in connection with the sale of Craft Brew to Anheuser-Busch.

Ademi & O’Reilly, LLP alleges Craft Brew’s financial outlook is improving and yet shareholders will receive only $16.50 per share, in cash. In 2016, Anheuser-Busch and Craft Brew entered into a long-term partnership that included an option for Anheuser-Busch to buy Craft Brew for up to $24.50. At the end of three years, if Anheuser-Busch had not agreed to make the purchase, it agreed to pay Craft Brew $20 million.

Last summer,  Anheuser-Busch paid opted out of its purchase option and paid $20 million. Craft Brew traded between $12 and $21 a share since the Anheuser-Busch deal before plunging to less than $8 in the two-plus months since the acquisition failed to take place.

Anheuser-Busch is purchasing Craft Brew at a substantial discount as it already owns 31.2% of Craft Brew so even with the $20 million payment, it is saving tens of millions from what the 2016 deal would have required it to pay.