Conagra Brands, Inc. (NYSE: CAG) Investor Securities Class Action Lawsuit 02/22/2019

If you purchased shares of Conagra Brands, Inc. (NYSE: CAG), you have certain options and for certain investors are short and strict deadlines running. Deadline: April 23, 2019. NYSE: CAG investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Conagra Brands
Case Name: 
Conagra Brands Shareholder Class Action Lawsuit 02/22/2019
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: CAG
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/22/2019
Class Period Begin: 
06/27/2018
Class Period End: 
12/19/2018
Court of Filing: 
U.S. District Court for the Northern District of Illinois
Deadline To File for Lead: 
04/23/2019
Summary: 

An investor in shares of Conagra Brands, Inc. (NYSE: CAG) filed a lawsuit in the U.S. District Court for the Northern District of Illinois over alleged violations of Federal Securities Laws by Conagra Brands, Inc. in connection with certain allegedly false and misleading statements made between June 27, 2018 and December 19, 2018.

Chicago, IL based Conagra Brands, Inc., together with its subsidiaries, operates as a food company in North America. Conagra Brands, Inc. reported that its Total Revenue rose from over $7.82 billion for the 12 months period that ended on May 28, 2017 to over $7.93 billion for the 12 months period that ended on May 27, 2018, and that its Net Income increased from $639.3 million to $808.4 million over those respective time periods.

On June 27, 2018, Conagra Brands, Inc announced the acquisition of Pinnacle Foods, Inc., in a cash and stock transaction valued at approximately $10.9 billion. On or about October 9, 2018, in order to partially finance the pending acquisition of Pinnacle Foods, Inc., Conagra Brands, Inc effectuated a secondary public offering of 16,312,057 shares of common stock, priced at $35.25 per share, raising net proceeds of approximately $612 million. Just weeks after the closing of the merger, on December 20, 2018, Conagra Brands, Inc stunned the market by releasing its third quarter 2018 results, as well as an update on the performance of the newly merged company, which revealed that Pinnacle Foods' performance had been much worse than previously represented. In addition, Conagra Brands, Inc revealed that Pinnacle Foods' three leading brands had "suffered sales and distribution losses" in 2018 and accounted "for the vast majority of Pinnacle Foods’ current challenges."

Shares of Conagra Brands, Inc. (NYSE: CAG) declined from $11.73 per share in October 2018 to as low as $4.78 per share on December 21, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers who acquired Conagra Brands, Inc. (NYSE: CAG) common shares between June 27, 2018 and December 19, 2018, inclusive (the “Class Period”), and/or purchased shares of Conagra’s common stock pursuant and/or traceable to Conagra’s secondary public offering commenced on or about October 9, 2018, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that the Defendants failed to disclose material information concerning Conagra’s acquisition of Pinnacle Foods, Inc. including that Conagra Brands, Inc inadequately performed proper due diligence in connection with the acquisition of Pinnacle, that the performance of Pinnacle Foods’ three leading brands was not deteriorating due to intensified competition, but to self-inflicted subpar innovation and executional missteps, that Pinnacle’s business was performing so poorly that it had resorted to pushing promotional deals to retailers in an effort to boost sales, and that as a result of the foregoing, Defendant’s public statements were materially false and/or misleading and/or lacked a reasonable basis when made.