New Glarus Brewing Co. owner files motion to dismiss lawsuit filed against her
The motion is in response to a lawsuit claiming Deb Carey misused brewery funds, among other allegations.
MADISON, Wis. (WMTV) - The president and CEO of New Glarus Brewing Company, Deb Carey, is asking a judge to dismiss a lawsuit filed against her and her company.
That initial lawsuit was filed back in August by brewery shareholders alleging Carey kept over $100 million, $40 million of which is in cash, and spent large sums of money on personal items. Carey allegedly stated she would not distribute these profits with the minority shareholders, beyond what was needed to cover the brewery taxes, the court document states. The group also alleges a list of claims that pertain to stock transfers.
Carey calls the claims “fictional”, “inaccurate” and “hurtful,” saying the lawsuit is an attempt to force the sale and dissolution of the brewery altogether.
In the Motion to Dismiss filed on Monday, Carey’s lawyers Mark Schmidt and Christopher Avallone from Von Briesen & Roper, S.C. say none of the claims are true. They argue the plaintiffs are claiming to be victims of fraud and oppression when in reality, their New Glarus stock increased in value from $10 a share to more than $2,000 a share, calling it an “investor’s dream, not nightmare.”
The motion goes on to say the plaintiffs fail to state a claim for any of the relief requested in the complaint and that the securities fraud claim omits the who, what, when, where and how required to plead fraud. Also, it says that the alleged statements and omissions are mere opinions that do not require disclosure. They call the lawsuit “a cynical and selfish ploy by the Plaintiff minority shareholders who want to either destroy New Glarus or force New Glarus to buy their shares for an artificially enhanced price.”
Carey sent a statement in regards to the Motion to Dismiss:
New Glarus Brewing Company has taken our first steps in defense against an incredibly hurtful and selfish attempt to force the sale or dissolution of the Brewery.
We are honored to give back to our local community and to non-profits throughout Wisconsin. We are passionate Brewers. We proudly invest in our incredible team members and are forever grateful every time a customer in a world of many choices supports local and buys New Glarus.
Our Wisconsin brewery sells our brews in our home state. We are employee-owned, founded, and successfully led for almost thirty years by a woman. Our cans, bottles, labels, and boxes are all made in Wisconsin. We are the largest user of Wisconsin grown hops. Much of our barley and fruit is grown right here in Wisconsin. These facts exemplify New Glarus Brewing Company’s unique commitment to Wisconsin.
Today and every day we thank you --- the public and all who came to our defense when inaccurate and hurtful comments were made about the brewery, our employees, and my family. Together, we have built something special and Only in Wisconsin. Rest assured we will fight to remain true to ourselves and our great state.
The motion now goes to a Dane County judge who will decide whether to grant it or not.
The plaintiffs’ lawyer was not immediately available for comment.
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