NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Flowers Foods, Inc. (NYSE: FLO).
In August 2016, the Company disclosed that it was under review by the U.S. Department of Labor (“DOL”) for violations of the Fair Labor Standards Act. The investigation reportedly involves the Company mischaracterizing distributors employed by it as independent contractors resulting in the loss of overtime pay and other benefits.
The Company’s actions, directed by its executives, have exposed it to numerous lawsuits filed by the distributors, one of which was settled for $9 million, as well as the cost of defending the Company against the DOL investigation and potential liability for penalties, fines, and repayment of back wages and benefits that could reportedly reach $1 billion. The Company has also been sued in a securities class action lawsuit for failing to disclose material information, violating federal securities laws. Recently, the court in that case partially denied the Company’s motion to dismiss, allowing the case to move forward.
KSF’s investigation is focusing on whether Flowers’ officers and/or directors breached their fiduciary duties to Flowers’ shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of CBS shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (firstname.lastname@example.org), or visit https://www.ksfcounsel.com/cases/nyse-flo/ to learn more.
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities, antitrust and consumer class actions, along with merger & acquisition and breach of fiduciary litigation against publicly traded companies on behalf of shareholders. The firm has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.