SAN DIEGO, July 16, 2024 (GLOBE NEWSWIRE) — A class action lawsuit has been filed on behalf of purchasers or transferees of common stock of Lamb Weston Holdings, Inc. (NYSE: LW) (“Lamb Weston” or the “Company”) between July 25, 2023 and April 3, 2024, inclusive (the “Class Period”), alleging violations of the federal securities laws by the Company and certain current and former officers.
Lamb Weston investors have until August 12, 2024 to request appointment as lead plaintiff in the Lamb Weston class action lawsuit.
If you purchased Lamb Weston common stock between July 25, 2023 and April 3, 2024 and suffered significant lossesand you would like to receive additional information or serve as lead plaintiff in this litigation, you may Send your information and contact us here: https://dicellolevitt.com/securities/lamb-weston/.
You may also contact DiCello Levitt partner Brian O’Mara by phone at (888) 287-9005 or [email protected]. Email inquiries will include mailing address, telephone number and number of shares purchased.
No case has been filed and no class action has been certified. Until a case has been filed and a class action has been certified, you will not be represented by an attorney unless you hire one. You may select an attorney of your choice.
Allegations in the case
Lamb Weston is a major producer of frozen potato products, which the company sells to restaurants and retailers around the world, including McDonald’s, one of its largest customers.
On July 25, 2023, Lamb Weston announced the completion of the development of a new Enterprise Resource Planning (“ERP”) software system that the Company will implement across all of its operations. The new ERP system was critical to Lamb Weston and would increase efficiency through greater automation and interface with key aspects of Lamb Weston’s business and operations, including, but not limited to, inventory levels and customer order deliveries. According to the Company, the ERP system would increase efficiency through greater automation.
As alleged in Lamb Weston’s lawsuit, Lamb Weston emphasized throughout the class action litigation that Lamb Weston had “strengthened its operational infrastructure” by developing the company’s new ERP system. The company also claimed that it had only experienced the “usual obstacles” in implementing the system and told investors that its fiscal year 2024 guidance took into account the financial impact of the system’s implementation.
According to Lamb Weston’s complaint, these and similar statements were false throughout the Class Period. Unbeknownst to investors, defendants knew or recklessly ignored significant functionality issues with the new ERP system that would affect its successful implementation. Despite these issues, Lamb Weston proceeded with the implementation despite knowing that premature implementation would have a negative impact on its business and operations. As a result, the Company’s statements about its business, operations and prospects, including its fiscal year 2024 financial guidance, lacked a reasonable factual basis. As a result of defendants’ misrepresentations, Lamb Weston common stock traded at artificially inflated prices during the Class Period.
On April 4, 2024, Lamb Weston announced that it had experienced significant difficulties in transitioning to its new ERP system. The disastrous rollout resulted in the company incurring $135 million in lost revenue in the third quarter of fiscal 2024 and requiring the company to reduce its full-year revenue forecast by $330 million. As a result, the price of Lamb Weston’s common stock declined by $19.59 per share, or over 19%.
About DiCello Levitt
At DiCello Levitt, we are committed to achieving justice for our clients through class actions, business-to-business litigation, public service litigation, whistleblower litigation, personal injury litigation, civil and human rights litigation, and mass tort litigation. Our lawyers are highly respected for their ability to litigate and win cases—whether through trial, settlement, or otherwise—for people who have been harmed, global corporations that have suffered significant economic loss, and governments seeking to protect the rights and interests of their citizens. Every day, we put our reputation—and our capital—on the line for our clients.
DiCello Levitt has been named Plaintiff Firm of the Year and Litigation Innovation Firm of the Year by the National Law Journal, in addition to its top-rated ratings in Chambers and Benchmark. The New York Law Journal also recently recognized DiCello Levitt as an Outstanding Leader in Litigation Innovation. For more information about the firm, including recent litigation victories and case resolutions, visit www.dicellolevitt.com.
Attorney advertising. Past results do not guarantee a similar result.
Media contact
Amy Coker
4747 Executive Drive, Suite 240
San Diego, CA 92121
619-963-2426
[email protected]
