Black Rock Coffee Bar (NASDAQ: BRCB) is facing a federal securities class action after its IPO disclosures allegedly failed to flag “sales transfer,” where new store openings cannibalize revenue from existing locations. After reporting Q1 results on May 12, 2026, management said the phenomenon created a 160-basis-point headwind to same-store sales growth, as same-store sales growth fell 44% sequentially and revenue growth slowed sharply. The stock dropped 30% the next day to $7.72, down more than 61% from the $20 IPO price, and the lawsuit was filed on June 18.