NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Conagra Brands, Inc. ("Conagra" or the "Company")(NYSE:CAG) of the April 23, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Conagra stock or options between June 27, 2018 and December 19, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/CAG. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of all those who purchased Conagra common stock between June 27, 2018 and December 19, 2018 (the "Class Period"). The case, Estrada v. Conagra Brands, Inc. et al., No. 19-cv-01805 was filed on March 14, 2019, and has been assigned to Judge Andrea R. Wood.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose material information, including that (1) Conagra inadequately performed proper due diligence in connection with the acquisition of Pinnacle; (2) the performance of Pinnacle’s three leading brands was not deteriorating due to intensified competition, but to self-inflicted subpar innovation and executional missteps; and (3) Pinnacle’s business was performing so poorly that it had resorted to pushing promotional deals to retailers in an effort to boost sales.
On December 20, 2018, Conagra issued a press release announcing financial results for the second quarter of fiscal year 2019 that ended on November 25, 2018. The financial results included the impact of 31 days of Pinnacle ownership. For the 31 days after the closing, net sales for the Pinnacle segment totaled $259 million which "were below expectations due to weak performance across a range of significant brands."
On this news, Conagra's share price fell from $29.09 per share on December 19, 2018 to a closing price of $24.28 on December 20, 2018: a $4.81 or a 16.53% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Conagra's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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