Robbins Geller Rudman & Dowd LLP ( http://www.rgrdlaw.com/cases/kraftheinz/ ) today announced that a class action has been commenced on behalf of purchasers of The Kraft Heinz Company (NASDAQ:KHC) common stock during the period between May 4, 2017 and February 21, 2019 (the Class Period).
Geller Rudman & Dowd LLP (http://www.rgrdlaw.com/cases/kraftheinz/)
today announced that a class action has been commenced on behalf of
purchasers of The Kraft Heinz Company (NASDAQ:KHC) common stock during
the period between May 4, 2017 and February 21, 2019 (the “Class
Period”). This action was filed in the Western District of Pennsylvania
and is captioned Walling v. The Kraft Heinz Company, et al.
The Private Securities Litigation Reform Act of 1995 permits any
investor who purchased Kraft Heinz common stock during the Class Period
to seek appointment as lead plaintiff. A lead plaintiff acts on behalf
of all other class members in directing the litigation. The lead
plaintiff can select a law firm of its choice. An investor’s ability to
share in any potential future recovery is not dependent upon serving as
lead plaintiff. If you wish to serve as lead plaintiff, you must move
the Court no later than 60 days from February 24, 2019. If you wish to
discuss this action or have any questions concerning this notice or your
rights or interests, please contact plaintiff’s counsel, Samuel
H. Rudman or David
A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or
via e-mail at email@example.com. You
can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/kraftheinz/.
The complaint charges Kraft Heinz, certain of its current and former
officers and 3G Capital, Inc., one of Kraft Heinz’s largest beneficial
stockholders, with violations of the Securities Exchange Act of 1934.
Kraft Heinz manufactures and markets food and beverage products in the
United States, Canada, Europe and internationally. Kraft Heinz products
include condiments and sauces, cheese and dairy products, meals, meats,
refreshment beverages, coffee, and other grocery products.
The complaint alleges that, during the Class Period, defendants made
false and misleading statements and/or failed to disclose adverse
information regarding Kraft Heinz’s operations and financial condition.
Specifically, defendants failed to disclose, among other things, that
Kraft Heinz had been materially overstating the value of certain of its
important product lines; that Kraft Heinz’s intangible assets, including
goodwill, associated with, at least, its Kraft natural cheese, Oscar
Mayer cold cuts, and U.S. Refrigerated and Canadian retail businesses
were materially impaired; that Kraft Heinz had been employing improper
accounting policies and procedures associated with its procurement
function, including, but not limited to, agreements, side agreements,
and changes or modifications to its agreements with its vendors; that
Kraft Heinz had been improperly accounting for the costs of products
sold; and that Kraft Heinz had been operating with material weaknesses
in its internal controls over financial reporting, including controls
related to the accounting and disclosure of new accounting standards,
its cost of products sold, its procurement function, the impairment of
goodwill and the impairment of intangible assets. As a result of this
information being withheld from the market, Kraft Heinz stock traded at
artificially inflated prices during the Class Period, with its stock
price reaching a high of more than $93 per share.
Then on February 21, 2019, Kraft Heinz announced its financial results
for the fourth quarter of 2018, including an impairment charge of $15.4
billion. The Company stated that, “[d]uring the fourth quarter, . . .
[it had] concluded that, based on several factors that developed during
the fourth quarter, the fair values of certain goodwill and intangible
assets were below their carrying amounts. As a result, the Company
recorded non-cash impairment charges of $15.4 billion to lower the
carrying amount of goodwill in certain reporting units, primarily U.S.
Refrigerated and Canada Retail, and certain intangible assets, primarily
the Kraft and Oscar Mayer trademarks. These charges resulted in a net
loss attributable to common shareholders of $12.6 billion and diluted
loss per share of $10.34.” The same day, Kraft Heinz disclosed that it
had received a subpoena in October 2018 from the SEC “associated with an
investigation into the Company’s procurement area, more specifically the
Company’s accounting policies, procedures, and internal controls related
to it procurement function, including, but not limited to, agreements,
side agreements, and changes or modifications to its agreements with
vendors.” On these disclosures, the price of Kraft Heinz stock fell
$13.23 per share, or more than 27%, to close at $34.95 per share on
February 22, 2019.
Plaintiff seeks to recover damages on behalf of all purchasers of Kraft
Heinz common stock during the Class Period (the “Class”). The plaintiff
is represented by Robbins Geller, which has extensive experience in
prosecuting investor class actions including actions involving financial
Robbins Geller is a national law firm representing investors in
securities litigation. With 200 lawyers in 10 offices, Robbins Geller
has obtained many of the largest securities class action recoveries in
history. For five consecutive years, ISS Securities Class Action
Services has ranked the Firm in its annual SCAS Top 50 Report as one of
the top law firms in both the amount recovered for shareholders and the
total number of class action settlements. Robbins Geller attorneys have
helped shape the securities laws and recovered tens of billions of
dollars on behalf of aggrieved victims. Beyond securing financial
recoveries for defrauded investors, Robbins Geller also advocates for
corporate governance reforms, helping to improve the financial markets
for investors worldwide. Please visit http://www.rgrdlaw.com
for more information.