SAN DIEGO & SECAUCUS, N.J.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Freshpet, Inc. (NYSE: FRPT) have filed a shareholder complaint against the company's officers and directors for breaches of their fiduciary duties from March 2015 through November 2015. Freshpet manufactures and markets natural fresh products, refrigerated meals, and treats for dogs and cats in the United States, Canada, and the United Kingdom.
View this information on the law firm's Shareholder Rights Blog:
Freshpet Accused of Touting Promising Outlook Despite Production Problems
According to the complaint, although Freshpet's officials knew that the company was experiencing production issues that prevented it from keeping Freshpet fridges stocked at many locations, Freshpet officials projected an optimistic outlook for the company. While Freshpet's stock was artificially inflated, company insiders sold over 7 million shares of their personally-held Freshpet stock for gross proceeds of over $140.8 million. On November 11, 2015, Freshpet finally lowered its guidance and admitted to approximately $2.4 million in lost sales, noting that the recent bankruptcy of two grocery retailers impacted Freshpet's fridge count and sales by approximately 100 locations. On this news, Freshpet's stock fell over 25%, representing a loss of over $70 million in market capitalization.
Freshpet Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Sign up for our FREE portfolio monitoring service, Stock Watch.
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