RM Law, P.C. has filed a class-action lawsuit against Campbell Soup Co. on behalf of all persons or entities that purchased Campbell common stock between Aug. 31, 2017, and May 17, 2018 (the class period).
This class action seeks to recover damages for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint alleges that, throughout the class period, Campbell made false or misleading statements, and failed to disclose adverse facts about its business, operations and prospects.
Specifically, the complaint alleges that: Campbell failed to disclose known trends that were negatively impacting the profitability of the Campbell Fresh division; and, as a result, positive statements about Campbell’s and the Campbell Fresh division’s business, operations and prospects were false, misleading or lacked a “reasonable basis.”
“Investors began to learn the truth about the Campbell’s operations through a series of disclosures throughout the class period, in which the company reported disappointing results but continued to assure investors about the company’s prospects,” said RM Law in a press release.
“Finally, on May 18, 2018, Campbell announced disappointing financial results for the third straight quarter, including a $19 million loss for the Campbell Fresh division in the third quarter fiscal 2018, forcing the company to take a $619 million pre-tax non-cash impairment charge for the division and to further revise its fiscal year 2018 earnings guidance,” RM Law continued. “Campbell simultaneously announced that Denise Morrison was stepping down immediately as chief executive officer of the company.”
Following this news, the price of Campbell common stock fell more than 12 percent, from a close of $39.22 per share on May 17, 2018, to $34.37 per share on May 18, 2018.
RM Law is a national shareholder litigation firm whose stated goal is to protect the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.