Glancy Prongay Wolke & Rotter LLP, a Leading Securities Fraud Law Firm, Encourages Simply Good Foods Company (SMPL) Shareholders To Inquire About Securities Fraud Class Action

LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay Wolke & Rotter LLP, a leading national shareholder rights law firm, announces that a securities fraud class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Simply Good Foods Company (“Simply Good Foods” or the “Company”) (NASDAQ: SMPL) securities between October 24, 2024 and April 8, 2026, inclusive (the “Class Period”). Simply Good Foods investors have until October 13, 2026 to file a lead plaintiff motion.

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What Happened?

On October 23, 2025, Simply Good Foods announced its fourth quarter and full year results for the year ending August 30, 2025, revealing that, among other things, the recently acquired Only What You Need (“OWYN”) segment suffered a slowdown in sales growth.

During the accompanying earnings call held the same day, the Company’s management revealed “a raw material sourcing decision for pea protein” had “resulted in taste and texture issues” leading to depressed sales.

On this news, shares of the Company fell $4.33 or 17.35% to close at $20.63 on October 23, 2025, thereby injuring investors.

Then, on April 9, 2026, the Company announced its second quarter of 2026 earnings results, revealing that consumer consumption had plummeted across all of the Company's brands and OWYN's quarterly sales has contracted by nearly 17% year-over-year. Simply Good Foods Company further revealed a $187 million impairment charge against OWYN brand intangible assets, and slashed its 2026 net sales outlook to a range of negative 7% to negative 10%.

During the accompanying earnings call, held the same day, the Company’s management acknowledged it had “made some strategic choices” that “ultimately weakened” the performance of its brands, including OWYN, and that OWYN had failed to meet the Company’s “own expectations” including due to a “a product quality issue.”

On this news, the price of Good Foods common stock declined $2.61 or 18.11% per share, to close at $11.80 on April 9, 2026, thereby injuring investors. Shares continued to fall the subsequent trading day, declining $1.36 or 11.53% per share, to close at $10.44 on April 10, 2026.

What Is The Lawsuit About?

The complaint filed in this class action alleges that between October 24, 2024 and April 8, 2026, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) that Simply Good Foods had lost key managerial personnel following the acquisition of OWYN necessary for the successful integration of the acquired OWYN assets; (2) that Simply Good Foods had materially increased its general and administrative spending to compensate for the loss of key managerial personnel; (3) the addition of a new pea protein supplier for OWYN prior to the acquisition had created significant product quality issues which had negatively impacted the product; (4) Simply Good Foods had engaged in promotional activities for OWYN products above its historical practices, eroding margins; (5) that, in order to stem the margin erosion, Simply Good Foods had cut brand support and marketing, further depressing product sales; (6) as a result of the above, the OWYN acquisition had largely failed to achieve its key strategic goals, the integration of OWYN had run into severe operational and execution problems, and the business and operational results for the OWYN segment had been materially negatively impacted, undermining the acquisitions economic rationale; and (7) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

If you purchased or otherwise acquired Simply Good Foods Company securities between October 24, 2024 and April 8, 2026, you may move the Court no later than October 13, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.

Contact Us To Participate or Learn More:

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:

Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [e-mail]
Telephone: [phone],
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.

If you inquire by email, please include your mailing address, telephone number and number of shares purchased.

To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.