Seattle judge: Starbucks must face lawsuit from shareholders over sudden drop in sales

Starbucks must face a lawsuit alleging that the company concealed the fact that its largest markets, the United States and China, experienced declining sales, deceiving shareholders and causing its stock price to drop 16% after the chain coffee store revealed unexpected weakness. Judge John Chun in the Seattle area of the United States ruled late on Wednesday that shareholders could try to prove that Starbucks deliberately misled them during an analyst conference call in January 2024, boasting the success of their "restructuring plan." This plan included statements about equipment upgrades, staffing, and scheduling that would create a "better experience" for employees and increase customer spending and loyalty.