LEAD PLAINTIFF DEADLINE ALERT: Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $100,000 In The Kraft Heinz Company To Contact The Firm
NEW YORK--(BUSINESS WIRE)--Apr 4, 2019--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in The Kraft Heinz Company (“Kraft Heinz” or the “Company”) (NASDAQ:KHC) of the April 25, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Kraft Heinz stock or options between July 6, 2015 and February 21, 2019 and would like to discuss your legal rights, click here:www.faruqilaw.com/KHC. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of all those who purchased Kraft Heinz securities between July 6, 2015 and February 21, 2019 (the “Class Period”). The case, Iron Workers District Council (Philadelphia and Vicinity) Retirement and Pension Plan v. The Kraft Heinz Company, et al., No. 19-cv-01845 was filed on March 15, 2019, and has been assigned to Judge Sharon Johnson Coleman.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose: (1) the probability that Zero Based Budgeting (“ZBB”) and other cost-saving measures would deliver increased profitability while simultaneously maintaining base business momentum; (2) that there were known trends that were negatively impacting the Company’s organic sales growth and profitability; (3) the ability of the Company’s pipeline of new products to generate organic growth; (4) whether “main-stays like Oscar Mayer [and] Kraft cheese” were “tangible drivers of [a] turnaround in the second half of 2018”; (5) that there were known trends that resulted in the intangible asset impairments associated with the Company’s Oscar Mayer and Kraft brands; and (6) that there were known trends that resulted in the goodwill impairments affecting its U.S. Refrigerated and Canada Retail divisions.
On November 1, 2018, the Company announced that its Earnings Per Share (“EPS”) of $0.78 per share fell short of consensus estimates by nearly 4%, while its EBITA missed analysts’ consensus estimates by approximately $100 million, or 7%.
On this news, the Company’s stock price fell from $56.20 per share on November 1, 2018 to $50.73 per share on November 2, 2018—a $5.47 or 9.73% drop.
Then, on February 21, 2019, the Company announced its financial results for the fourth quarter and full year 2018, which fell well below expectations. The Company reported organic net sales growth of 2.4%, with an EPS of $0.84, which was $0.10 below consensus estimates, as well as revenues $50 million below consensus expectations. Kraft Heinz also announced that the Company’s poor performance required the Company to take a $15.4 billion non-cash impairment charge related to the goodwill and intangible assets driven “primarily [by] the Kraft and Oscar Mayer trademarks” and due “primarily [to] U.S. Refrigerated and Canada Retail.”
On this news, the Company’s stock price fell from $48.18 per share on February 21, 2019 to $34.95 per share on February 22, 2019—a $13.23 or 27.46% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Kraft Heinz’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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PUB: 04/04/2019 04:44 PM/DISC: 04/04/2019 04:44 PM