NEW YORK, Aug. 03, 2024 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Lamb Weston Holdings, Inc. (“Lamb Weston” or the “Company”) (NYSE: LW). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Lamb Weston and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until August 12, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Lamb Weston securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On April 4, 2024, Lamb Weston reported financial results for its fiscal third quarter 2024 and disclosed significant problems with its transition to its new Enterprise Resource Planning (“ERP”) software system, which had been designed to interface with the most important aspects of Lamb Weston’s business and operations, including, among other things, inventories and customer order shipments. The system did not function properly, causing the Company to lose over $130 million in sales during its third quarter of fiscal 2024 and reduce its sales guidance for the full fiscal year by $330 million, at the midpoint. The unsuccessful ERP transition resulted in “reduced visibility into finished goods inventories at [ ] distribution centers,” which negatively impacted the Company’s ability to fulfill customer orders, resulting in shipment delays and cancelled orders. In total, the ERP transition negatively impacted Lamb Weston’s net sales by $135 million, net income by $72 million, and adjusted EBITDA by $95 million, with more than half of that due to lower sales and unfulfilled customer orders and the remainder due to incremental costs and expenses directly related to the ERP transition. For the third quarter of fiscal 2024, the Company also reported a 17% decline in sales volumes in North America year-over-year, more than half of which Lamb Weston attributed to the ERP transition. Lamb Weston also reduced its financial outlook for fiscal 2024, including a $330 million reduction to its sales guidance, at the midpoint. Lamb Weston disclosed that it expected its sales volumes in the fourth quarter to be negatively impacted by some customers in North America that were affected by the botched ERP transition, as those customers sought supply from Lamb Weston’s competitors.
On this news, Lamb Weston’s stock price fell $19.59 per share, or 19.4%, to close at $81.53 per share on April 4, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
