Flowers Foods Inc (NYSE: FLO) Investor Securities Class Action Lawsuit 08/12/2016

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Company Name(s): 
Flowers Foods
Case Name: 
Flowers Foods Shareholder Class Action Lawsuit 08/12/2016
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: FLO
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/12/2016
Class Period Begin: 
02/07/2013
Class Period End: 
08/10/2016
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
10/11/2016
Summary: 

March 23, 2018 - The court granted in part and denied in part defendants' motion to dismiss.

March 13, 2017 - Defendants filed a motion to dismiss.

January 12, 2017 - The lead plaintiff filed an amended consolidated complaint.

November 21, 2016 - The case was transferred to the U.S. District Court for the Middle District of Georgia.

October 21, 2016 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

October 11, 2016 - Lead plaintiff motions were filed.

August 12, 2016 - An investor in shares of Flowers Foods Inc (NYSE: FLO) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Flowers Foods Inc in connection with certain allegedly false and misleading statements made between February 7, 2013, and August 10, 2016.

According to the complaint the plaintiff alleges on behalf of purchasers of Flowers Foods Inc (NYSE: FLO) common shares between February 7, 2013, and August 10, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 7, 2013, and August 10, 2016, the defendants made allegedly false and/or misleading statements and/or allegedly failed to disclose that Flowers Foods Inc was improperly classifying employees as independent contractors, that the misclassification exposed Flowers Foods Inc to legal liability and/or negative regulatory action, that proper classification would have a negative impact on the Company’s operations, and that, as a result of the foregoing, defendants’ statements about Flowers Foods Inc’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

Flowers Foods Inc reported that its Total Revenue rose from over $3.74 billion for the 53 weeks period that ended on January 3, 2015 to over $3.77 billion for the 52 weeks period that ended on January 2, 2016 and that its Net Income for those respective time periods increased from $175.74 million to 189.19 million.

On August 10, 2016, Flowers Foods Inc reported its second quarter 2016 results and revised its fiscal 2016 guidance. Flowers Foods Inc also disclosed that the U.S. Department of Labor had notified Flower Foods Inc that it has been scheduled for a compliance review under the Fair Labor Standards Act.

Shares of Flowers Foods Inc (NYSE: FLO) declined from $19.62 per share on July 26, 2016 to as low as $14.35 per share on August 11, 2016.