The main Constellation Brands lawsuit currently in litigation is a securities fraud class action filed in early 2025 in the U.S. District Court for the Western District of New York, accusing the maker of Modelo Especial and Corona of misleading investors about the deteriorating health of its wine and spirits business while spending more than $668 million buying back its own stock at what plaintiffs call artificially inflated prices. The case covers shareholders who bought Constellation stock between April 11, 2024, and January 8, 2025.
What Shareholders Are Alleging
The complaint centers on statements made across nine months of earnings calls and investor communications. On an April 2024 call, CEO Bill Newlands told investors the company was working to “boost the price mix and media spending on its wine brands” and expressed confidence in Constellation’s “ability to continue to create shareholder value and deliver on our commitments.”1Brewbound. Lawsuit Alleges Constellation Brands Misled Investors on Wine and Spirits Division’s Performance In December, CFO Garth Hankinson said wine and spirits initiatives were starting to “pay off” and projected an uptick in sales tied to holiday gifting and vintage releases.2Bottle Raiders. Constellation Brands Investor Lawsuit
Plaintiffs say those statements were materially false and misleading because the wine and spirits division was in fact deteriorating. While that optimistic messaging was going out, the company was buying back its own stock. According to the complaint, Constellation spent over $668 million on repurchases at inflated prices and overpaid by more than $178.5 million.3The Spirits Business. Lawsuit Alleges Constellation Misled Shareholders The suit further accuses five company executives of personally enriching themselves through bonuses, stock options, or similar compensation tied to the company’s stated performance.4The Drinks Business. Constellation Brands Hit With Shareholder Lawsuit
Beyond damages, shareholders are asking for governance changes that would give investors more influence over company policy.4The Drinks Business. Constellation Brands Hit With Shareholder Lawsuit
Who Is Being Sued
The named defendants are Constellation Brands, CEO Bill Newlands, CFO Garth Hankinson, and three other executives identified in the complaint.4The Drinks Business. Constellation Brands Hit With Shareholder Lawsuit The claims are brought under the Securities Exchange Act of 1934. The initial complaint, Meza v. Constellation Brands, Inc., No. 25-cv-06107, was filed by plaintiff Macaria Meza. A related action, Mason v. Newlands et al., No. 1:25-cv-00353, was filed in the same court on April 21, 2025.5Bloomberg Law. Constellation Brands Brass Sued by Shareholder Over Drink Demand
Where the Case Stands
On May 28, 2025, the court appointed Low Lily as lead plaintiff and Levi & Korsinsky, LLP as lead counsel for the proposed class.6Levi & Korsinsky. Meza v. Constellation Brands Lead Plaintiff Order Defendants filed a motion to dismiss on September 17, 2025, and briefing was completed on December 12, 2025.7CourtListener. Meza v. Constellation Brands, Inc. As of mid-2026 the court has not yet ruled on that motion, and Constellation has not publicly commented on the litigation.4The Drinks Business. Constellation Brands Hit With Shareholder Lawsuit No class has been certified yet, and no damages have been awarded.
The Disclosures That Triggered the Suit
The class period ended on January 8, 2025. Two days later, on January 10, Constellation released its third-quarter fiscal 2025 earnings report, and the numbers were sharply worse than the company’s earlier messaging had suggested. Wine and spirits shipment volumes fell 16.4%, depletion volumes dropped 4.3%, net sales declined 14%, and operating income fell 25%.1Brewbound. Lawsuit Alleges Constellation Brands Misled Investors on Wine and Spirits Division’s Performance
Alongside those figures, Constellation disclosed an expected impairment loss of $1.5 billion to $2.5 billion on the wine and spirits division, cutting its fair market value from roughly $3 billion to as low as $500 million. Constellation’s stock price dropped 17% that day.5Bloomberg Law. Constellation Brands Brass Sued by Shareholder Over Drink Demand That drop is the loss shareholders in the class are seeking to recover.
What Happened to the Wine and Spirits Business Afterward
The financial picture continued to deteriorate after the class period. For fiscal 2025 as a whole, Constellation recorded a non-cash impairment loss of about $3.3 billion on the wine and spirits business, including $2.797 billion in goodwill and intangible asset write-downs. The company blamed “continued negative trends within our Wine and Spirits business primarily attributable to our U.S. wholesale market, driven by declines in both the overall wine market and in our mainstream and premium wine brands.”8Constellation Brands. Constellation Brands Updates Fiscal 2026 Outlook
On April 9, 2025, Constellation announced it would sell its mainstream wine brands, including Woodbridge, Meiomi, Robert Mondavi Private Selection, Cook’s, SIMI, and J. Rogét, to The Wine Group, keeping only higher-end labels such as The Prisoner Wine Company, Kim Crawford, and Ruffino.9Constellation Brands. Constellation Brands Repositions Wine and Spirits Business The sale closed on June 2, 2025.10Constellation Brands. Constellation Brands Closes Wine Transaction With The Wine Group Wine and spirits net sales fell from $1.67 billion in fiscal 2025 to $823.8 million in fiscal 2026.11Stock Titan. Constellation Brands, Inc. Files Annual Report
CEO Departure
On February 10, 2026, Constellation announced that Bill Newlands, one of the two individually named defendants in the securities suit, would step down as president and CEO effective April 13, 2026. Nicholas Fink, a board member since 2021 and former head of Fortune Brands Innovations, was named his successor.12WXXI News. Constellation Announces Change in Leadership Newlands will remain a strategic adviser through late 2026 under a transition agreement.13Constellation Brands. Constellation Brands CEO Succession Filing The company described the change as part of a “long-envisioned succession planning process.” Newlands remains a defendant in the securities litigation regardless of his departure from the executive role.
Other Constellation Brands Legal Matters
Two other Constellation legal matters sometimes come up in searches but are unrelated to the securities case. A California employment class action, Michael Hillstrom v. Constellation Brands, Inc., TPWC, Inc. (Case No. 22CV000006), covering current and former non-exempt California employees who worked for the company between January 2018 and July 2023, settled for a gross amount of $2.5 million. The Napa County Superior Court granted final approval on April 23, 2024, with payments distributed automatically to eligible class members who did not opt out.14Hillstrom Constellation Settlement. Hillstrom v. Constellation Brands Settlement15Hillstrom Constellation Settlement. Hillstrom v. Constellation Brands Settlement FAQs
Separately, in 2020 the Federal Trade Commission reviewed E. & J. Gallo Winery’s acquisition of over 30 wine, brandy, and concentrate brands from Constellation. The deal, originally valued at $1.7 billion, was restructured to roughly $1.1 billion after the companies removed brands to address antitrust concerns in markets including low-priced sparkling wine, brandy, port, sherry, and high color concentrates. A consent order approved unanimously by the five commissioners resolved the matter.16FTC. FTC Imposes Conditions on E.J. Gallo Winery’s Acquisition of Assets From Constellation Brands