OKLAHOMA CITY--(BUSINESS WIRE)--The law firm of Federman & Sherwood has initiated an investigation into Annie’s, Inc. (NYSE: BNNY) with respect to alleged violations of the federal securities laws.
On June 2, 2014, the Company disclosed in its Annual Report for the 2014 fiscal year that the Company had identified a material weakness in its internal control over financial reporting. The Company disclosed: (1) the historical methodology for estimating certain trade allowances was not designed to include all related trade promotion costs subsequent to period end; and (2) the controls over accounting for contract manufacturing were not designed to precisely evaluate the valuation and accuracy of all contract manufacturing receivables and payables. According to Annie's, the material weakness resulted in audit adjustments during the fourth quarter ended March 31, 2014 and misstatements to the net sales, costs of goods sold, inventory, accounts receivable, prepaid expenses and other current assets, and accrued liabilities and revisions to the consolidated financial statements for the first three quarters of fiscal 2014, for the quarterly and annual statements for the 2013 fiscal year ended March 31, 2013, and the 2012 fiscal year ended March 31, 2012. On this news, the Company’s shares declined over 3% to close at $31.65 per share.
After the market closed on June 3, 2014, the Company announced that its independent registered public accounting firm, PricewaterhouseCoopers LLP, was resigning effective the earlier of August 11, 2014 or the completion of the Company's filing with the SEC of the Form 10-Q for the period ending June 30, 2014. According to the Company, the Audit Committee was in the process of selecting a new independent registered public accounting firm. On this news, the Company’s shares declined $2.53 per share, nearly 8%, to close on June 4, 2014, at $30.07 per share.
If you purchased the Company’s securities between August 8, 2013 and June 3, 2014 and have information to assist in our investigation, or, have any questions or concerns regarding this notice or preservation of your rights, please contact William B. Federman. Federman & Sherwood has extensive nationwide experience in representing investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases.