Just a little bit of advice (take it or leave it), when you start cooking the books, don’t be surprised when you end up getting cooked yourself. Constellation Brands… the alcohol company behind Modelo, Corona, and that sketchy bottle of who knows what from Aldi…  just got hit with a lawsuit for allegedly telling a few too many little white lies to their investors.

Instead of coming clean about their wine sales cratering to historic lows, Constellation Brands allegedly decided to put on a Broadway-level performance for investors. According to recent allegations, executives doctored internal sales reports, massaged the numbers during earnings calls, and painted a better than actual picture of "strong wine demand"... even as cases were piling up unsold in warehouses. For a while, the show went on. But like every big lie, the truth eventually came out.

From April 2024 to January 2025, Constellation was out here telling investors that its wine and spirits business was crushing it. They bragged about “momentum,” “boosted price mix,” and even “upping media spend” to push their brands. In reality their sales dropped 7% over the same period.

Then, to really seal the deal, they sold off a bunch of their lower-tier wine brands… all while still pushing the “everything is fine” narrative. According to shareholder Jeff Mason, who filed the lawsuit, Constellation was “failing to disclose material adverse facts” about the crumbling state of its wine business.

Not only were they allegedly misleading investors, but Constellation also went on a $668 million stock buyback spree… at what the lawsuit claims was an artificially inflated price. And while the company was busy buying its own stock, insiders helped themselves to bonuses, stock options, and all the goodies that come with inflated numbers.

It’s like setting your house on fire and then collecting the insurance money. On the other hand, the wine and spirits business is projected to fall another 17% to 20% this year. So far, Constellation’s PR team has said absolutely nothing, which is never a good sign.

And while the wine business circles the drain, the beer side isn’t exactly crushing it either. Trump-era tariffs and political tensions are putting pressure on their core Hispanic consumer base…  the very folks who keep Modelo and Corona flowing.

Their stock has been a hot mess lately… down 29% over the past year and 16% in 2025. It’s trading at about $185, way off its 52-week high of $265.70.

On paper, Wall Street is still kinda rooting for them (16 analysts say “BUY,” one brave soul says “HOLD”), but that could just be wishful thinking. Their average price target is about $216, which feels like hopes and dreams unless you think lawsuits and falling sales are good news.

Stocks.News has positions in Constellation Brands.