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  4. [8-K] BOSTON BEER CO INC Reports Material Event

Litigation ruling trims interest, lifts Boston Beer (SAM) GAAP EPS

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

The Boston Beer Company, Inc. reports an amended final judgment in its supplier dispute with Ardagh Metal Packaging USA Corp. The Court set damages at $175.5 million and pre-judgement interest at $15.5 million, for a combined pre-tax total of $191.0 million.

Previously, Boston Beer had recorded a non-recurring pre-tax litigation expense of $175.5 million and related pre-judgement interest expense of $36.5 million, totaling $212.0 million. The new ruling lowers recorded pre-judgement interest by $21.0 million, which the company estimates will favorably impact GAAP earnings per share by $1.52 per diluted share in the second quarter of 2026.

The company continues to deny breaching the contract and plans to pursue posttrial motions and appeals. Post-judgement interest from April 3, 2026 will accrue on the $191.0 million at an estimated statutory rate of 3.79%, and the company states it cannot estimate when or if damages and interest will ultimately be paid.

Positive

  • None.

Negative

  • The company faces a material litigation judgment totaling $191.0 million, with additional post-judgement interest accruing at an estimated 3.79%, creating significant potential cash outflows and ongoing uncertainty despite the reduced pre-judgement interest.

Insights

Amended judgment cuts interest accrual but leaves a large litigation overhang.

Boston Beer discloses that the Court entered an amended final judgment of $175.5 million in damages plus $15.5 million in pre-judgement interest, totaling $191.0 million. Earlier, the company had accrued $212.0 million, including $36.5 million of estimated pre-judgement interest.

The revised interest determination produces a $21.0 million reduction in pre-judgement interest expense, which management estimates will lift GAAP earnings by $1.52 per diluted share in Q2 2026. This is a one-time accounting benefit rather than an improvement in underlying operations.

Despite the reduced interest, the litigation remains significant. Post-judgement interest at an estimated statutory rate of 3.79% on $191.0 million will continue to accrue through the appeals process. The company plans to pursue posttrial motions and appellate remedies and notes it cannot estimate when or if it will ultimately pay the damages and interest, so the financial and cash impacts remain uncertain.

Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Initial litigation expense $175.5 million pre-tax Non-recurring litigation expense recorded in Q1 2026
Initial pre-judgement interest $36.5 million Pre-judgement interest expense recorded in Q1 2026
Initial combined total $212.0 million pre-tax Damages plus pre-judgement interest recorded in Q1 2026
Amended judgment total $191.0 million pre-tax Final damages $175.5M plus pre-judgement interest $15.5M
Amended pre-judgement interest $15.5 million Pre-judgement interest set by Court on May 26, 2026
Interest reduction $21.0 million Decrease in pre-judgement interest versus amount recorded in Q1 2026
GAAP EPS impact $1.52 per diluted share Estimated favorable impact on Q2 2026 GAAP EPS
Post-judgement interest rate 3.79% statutory rate Estimated rate applied to $191.0M from April 3, 2026
pre-judgement interest financial
"recorded a non-recurring pre-tax litigation expense of $175.5 million and related pre-judgement interest expense of $36.5 million"
Pre-judgement interest is the interest a court awards on a money claim for the period between when a loss or harm occurred and when the court issues a final judgment. Think of it like adding interest to an unpaid bill from the day it became due until it is finally paid; for investors this can meaningfully increase a company’s legal liability or the payout it receives, affecting cash flow, reserves and valuation.
amended final judgement regulatory
"On May 26, 2026, the Court entered an amended final judgement in the amount of $175.5 million"
GAAP Earnings Per Share financial
"will record this $21.0 million decrease in pre-judgement interest expense, which is estimated to favorably impact the Company’s GAAP Earnings Per Share"
GAAP earnings per share is the profit a company reports for each share of stock after following standard accounting rules called Generally Accepted Accounting Principles (GAAP). Investors use it as a consistent measure of profitability—like checking the odometer reading on a car using the same scale—so they can compare companies and track performance over time, though it can be affected by one-time items or accounting choices.
post-judgement interest financial
"Post-judgement interest expense from April 3, 2026 through the appeals process will be applied"
statutory rate regulatory
"applied to the combined pre-tax total amount of $191.0 million at the statutory rate, which is estimated to be 3.79%"
The statutory rate is the percentage set by law that applies to a specific obligation, most commonly the legally required tax rate a company must use when calculating taxes on its income. Investors watch it because it determines how much of a company’s earnings are paid to the government and thus directly affects after-tax profit, cash flow and valuation — like a fixed share of each dollar of profit the company must hand over.
non-recurring pre-tax litigation expense financial
"the Company recorded a non-recurring pre-tax litigation expense of $175.5 million"
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Understanding 8-K Material Events →
0000949870false00009498702026-05-262026-05-26

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 26, 2026

 

 

The Boston Beer Company, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Massachusetts

001-14092

04-3284048

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

One Design Center Place

Suite 850

 

Boston, Massachusetts

 

02210

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (617) 368-5000

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Class A Common Stock. $0.01 par value

 

SAM

 

The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Item 8.01 Other Events.

As reported in the Quarterly Report on Form 10-Q filed by the Company on April 30, 2026, on April 6, 2026 a jury in the United States District Court for the Northern District of Illinois (the “Court”) returned a verdict awarding damages against the Company in its supplier dispute with Ardagh Metal Packaging USA Corp. (“Ardagh”). As a result of the verdict, during the first quarter of 2026 the Company recorded a non-recurring pre-tax litigation expense of $175.5 million and related pre-judgement interest expense of $36.5 million for a combined pre-tax total of $212.0 million. The Company reported that the final judgement had not been entered, that pre-judgement interest had not yet been determined, and that potential pre-judgment interest outcomes ranged between zero and $36.5 million.

On May 26, 2026, the Court entered an amended final judgement in the amount of $175.5 million and determined the pre-judgement interest to be $15.5 million, for a combined pre-tax total of $191.0 million. The pre-judgement interest was within the previously disclosed range, but $21.0 million lower than the amount recorded as pre-judgement interest expense during the first quarter. In the second quarter of 2026, the Company will record this $21.0 million decrease in pre-judgement interest expense, which is estimated to favorably impact the Company’s GAAP Earnings Per Share by $1.52 per diluted share.

The Company continues to deny that it breached the terms of the contract with Ardagh and intends to pursue all available posttrial motions and appellate remedies. Post-judgement interest expense from April 3, 2026 through the appeals process will be applied to the combined pre-tax total amount of $191.0 million at the statutory rate, which is estimated to be 3.79%. The Company cannot estimate when or if damages or interest will ultimately be paid or when this matter will ultimately be resolved.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

The Boston Beer Company, Inc.

 

 

 

 

Date:

June 1, 2026

By:

 /s/ Jim Koch

 

 

 

Name: C. James Koch
Title: Founder, Brewer, President, CEO, and Chairman

 

Source: View Original Filing on SEC EDGAR

FAQ

What litigation update did The Boston Beer Company (SAM) report?

The company reported an amended final judgment in its dispute with Ardagh Metal Packaging USA Corp., setting damages at $175.5 million plus $15.5 million in pre-judgement interest, for a combined pre-tax total of $191.0 million.

How does the amended judgment affect Boston Beer’s litigation expenses?

The Court’s determination of $15.5 million in pre-judgement interest is $21.0 million lower than the $36.5 million interest expense Boston Beer recorded earlier, reducing previously accrued pre-tax litigation-related expense from $212.0 million to $191.0 million.

What is the expected impact on Boston Beer’s GAAP EPS from this change?

Boston Beer estimates that the $21.0 million decrease in pre-judgement interest expense will favorably impact its GAAP Earnings Per Share by about $1.52 per diluted share in the second quarter of 2026, reflecting a one-time accounting adjustment.

Does Boston Beer accept the court’s findings in the Ardagh dispute?

The company continues to deny breaching its contract with Ardagh Metal Packaging USA Corp. and states that it intends to pursue all available posttrial motions and appellate remedies, challenging aspects of the jury verdict and resulting amended final judgment.

What ongoing interest costs could Boston Beer incur on the judgment?

Post-judgement interest from April 3, 2026 will accrue on the $191.0 million combined amount at an estimated statutory rate of about 3.79%. This interest will continue during the appeals process, adding to the potential total liability over time.

Can Boston Beer estimate when it will pay the Ardagh judgment?

The company states it cannot estimate when or if it will ultimately pay the $191.0 million in damages and related interest or when the Ardagh matter will be resolved, given planned posttrial motions, appeals, and ongoing post-judgement interest accrual.

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