Securities fraud class action litigation has been filed on behalf of investors in the securities of Conagra Brands, Inc. (“Conagra” or the “Company”) (NYSE: CAG). If you purchased or otherwise acquired the securities of Conagra between June 27, 2018 and December 19, 2018, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than April 23, 2019.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the actions. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
Conagra investors may choose to have Lieff Cabraser review their claim by completing the contact form below. You can also call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358 to discuss the litigation.
Background on the Conagra Securities Class Litigation
Conagra, headquartered in Chicago, manufactures and markets packaged foods for retail consumers, restaurants, and institutions and has a portfolio of well-known food brands such as Slim Jim and Orville Redenbacher’s. In June 2018, Conagra announced that it would acquire Pinnacle, another food company with its own portfolio of brands. To finance that transaction, Conagra announced a secondary public stock offering in October 2018 to raise more than $600 million.
The action alleges that, throughout the Class Period, Conagra and certain of its senior executives misrepresented and failed to disclose to the market that: i) Conagra performed inadequate due diligence in connection with its acquisition of Pinnacle; ii) the performance of Pinnacle’s leading brands was not deteriorating due to intensified competition, but rather to its own subpar innovation and executional missteps; iii) Pinnacle’s business was performing so poorly that it had to push promotional deals to retailers to try and boost sales; and iv) as a result of the foregoing, Conagra’s public statements regarding its acquisition of Pinnacle were materially false or misleading when made.
The market began to learn of Conagra’s alleged misconduct on December 20, 2018, when the Company announced that net sales for the Pinnacle segment of its business were “below expectations due to weak performance across a range of significant brands.” In a conference call that same day, Conagra’s Chief Executive Officer and President, Sean Connolly, stated that there had been a “deterioration in the legacy Pinnacle business over the course of the calendar year 2018” as “growth stalled” for Birds Eye, Duncan Hines, and Wish-Bones. Connolly stated that “Pinnacle overextended new items in the same demand pools, favored high margins over high-quality and highly competitive products and missed some major consumer trends,” and acknowledged that “the challenges that the Pinnacle business face have been largely self-inflicted due to subpar innovation and executional missteps.” Following this news, between the close on December 19 and December 24, 2018, Conagra’s stock price fell $8.13, or nearly 28%, to close at $20.96 on December 24, 2018.
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