02:46 PM EDT, 10/22/2024 (MT Newswires) -- Starbucks' ( SBUX ) officers and directors are facing a shareholder derivative lawsuit filed Monday for allegedly misleading investors by downplaying risks related to seasonality and growth in foreign markets, especially China.

The defendants, including Starbucks ( SBUX ) former chief executive Laxman Narasimhan, were accused of breaching fiduciary duties over a period of more than five months starting November 2023 by allegedly causing the company to make "materially false and misleading" public statements about its business, operations, and prospects.

The alleged misrepresentations resulted in "artificially inflated" stock prices at which Starbucks ( SBUX ) repurchased its own shares, according to a copy of the lawsuit.

"The company has been substantially damaged as a result of the individual defendants' knowing or highly reckless breaches of fiduciary duty and other misconduct," the complaint said.

Starbucks ( SBUX ) rejected the allegations and told MT Newswires that "the allegations in the complaint are without merit. Starbucks ( SBUX ) takes great care in communicating transparently and authentically with its stakeholders, including its investors, partners, customers, and community."

Narasimhan, who stepped down from all of his Starbucks ( SBUX ) positions in August, could not be reached immediately for comment.

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