NEWTOWN, Pa., June 20, 2024 (GLOBE NEWSWIRE) -- Edelson Lechtzin LLP, a leading class action law firm, is investigating securities fraud claims on behalf of investors of Lamb Weston Holdings, Inc. (“Lamb Weston”) common stock (NYSE: LW) between July 25, 2023, and April 3, 2024, inclusive (the “Class Period”).
Investors who purchased Lamb Weston stock may move the U.S. District Court for the District of Idaho to appoint them as lead plaintiff, no later than August 12, 2024. Please contact Edelson Lechtzin LLP to discuss your investment losses at 844-696-7492, or by e-mail at elechtzin@edelson-law.com. A copy of the class action complaint can be viewed HERE.
What is a Lead Plaintiff?
The lead plaintiff is a court-appointed representative of a class of purchasers of securities in a class action under the federal securities fraud laws. The lead plaintiff’s responsibilities include selecting the attorneys who will represent the class in the lawsuit, and if necessary, providing testimony at trial.
Background on Lamb Weston Holdings, Inc.
Lamb Weston, based in Eagle, Idaho, distributes and markets frozen potato products globally.
The Securities Fraud Claims
On July 25, 2023, Lamb Weston completed the design of a new Enterprise Resource Planning (ERP) software system, which was intended to connect important aspects of its business and operations to improve efficiency through increased automation. In November 2023, the company transitioned some of its previous systems to the new ERP system. Defendants claimed the Company had experienced only the “usual bumps” in the implementation of the ERP system and told investors that its guidance for fiscal 2024 accounted for the financial impact of the system’s deployment.
The statements made during the Class Period were false. The Defendants knew of significant problems in the new ERP system’s functionality. Despite this, Lamb Weston proceeded with the implementation, affecting its business and operations. As a result, the company's statements lacked a reasonable factual basis, leading to artificially inflated stock prices.
On April 4, 2024, Lamb Weston revealed that it faced major challenges while implementing its new ERP system. The problematic roll-out resulted in a $135 million loss in sales for the third quarter of fiscal year 2024, and the company had to lower its sales guidance for the full fiscal year by $330 million. On this news, the price of Lamb Weston stock declined by $19.59 per share or over 19%.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: medelson@edelson-law.com
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
Edelson Lechtzin LLP is a leading class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
