SAN DIEGO, July 16, 2024 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of purchasers or acquirers of Lamb Weston Holdings, Inc. (NYSE: LW) (“Lamb Weston” or the “Company”) common stock between July 25, 2023 and April 3, 2024, inclusive (the “Class Period”), charging the Company and certain current and former senior executives with violations of the federal securities laws.
Lamb Weston investors have until August 12, 2024 to seek appointment as lead plaintiff of the Lamb Weston class action lawsuit.
If you purchased Lamb Weston common stock between July 25, 2023 and April 3, 2024, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/lamb-weston/.
You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
No Case Has Been Filed and No Class Has Been Certified. Until a case is filed and a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Case Allegations
Lamb Weston is a large producer of frozen potato products, which the Company sells to restaurants and retailers around the world, including to McDonald’s, which is one of its largest customers.
On July 25, 2023, Lamb Weston announced the completion of the design of a new Enterprise Resource Planning (“ERP”) software system that the Company would work to implement across its operations. The new ERP system was critically important to Lamb Weston, and it would drive efficiency through increased automation and interface with the most important aspects of Lamb Weston’s business and operations, including, among other things, inventories and customer order shipments. According to the Company, the ERP system would drive efficiency through increased automation.
As alleged in the Lamb Weston lawsuit, throughout the Class Period, Lamb Weston emphasized that, through the design of the Company’s new ERP system, Lamb Weston had “strengthen[ed] [its] operational infrastructure.” The Company also claimed that it had experienced only the “usual bumps” in the implementation of the system and told investors that its guidance for fiscal 2024 accounted for the financial impact of the system’s deployment.
According to the Lamb Weston lawsuit, these and similar statements made throughout the Class Period were false. Unbeknownst to investors, Defendants knew of, or recklessly disregarded, significant problems in the functionality of the new ERP system that would impact its successful implementation. Notwithstanding those problems, Lamb Weston proceeded with the implementation, knowing that a premature launch would negatively impact its business and operations. As a result, the Company’s statements concerning its business, operations, and prospects, including its financial guidance for fiscal 2024, lacked a reasonable factual basis. As a result of Defendants’ misrepresentations, shares of Lamb Weston common stock traded at artificially inflated prices during the Class Period.
On April 4, 2024, Lamb Weston disclosed that it experienced significant challenges in its transition to the new ERP system. The disastrous roll-out caused the Company to lose $135 million in sales during the third quarter of fiscal 2024 and necessitated a $330 million reduction to its sales guidance for the full fiscal year. As a result, the price of Lamb Weston common stock declined by $19.59 per share, or over 19%.
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