NEW YORK, May 17, 2023 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP reminds investors that a complaint has been filed on behalf of purchasers of Beyond Meat, Inc. (“Beyond Meat” or the “Company”) common stock (NASDAQ: BYND) between May 5, 2020 and October 13, 2022, inclusive (the “Class Period”). Click Here to Join Investigation.
If you acquired Beyond Meat common stock during the Class Period and would like to discuss this case, please click here. You may also contact us by emailing pmayer@kaplanfox.com or calling (646) 315-9003.
If you are a member of the proposed Class, you may move the court no later than July 10, 2023 to serve as a lead plaintiff for the purported class. If you have losses, we encourage you to contact us to learn more about the lead plaintiff process.
Beyond Meat is a global producer of plant-based meat substitutes such as Beyond Burgers, Beyond Sausages, Beyond Meatballs, and Beyond Pepperoni. According to the complaint, the Company sought to build “meat directly from plants” by faithfully replicating the look, taste, and texture of animal meat using only vegan, non-genetically modified ingredients.
The complaint alleges that, throughout the Class Period, Defendants made numerous materially false and misleading statements and omissions concerning the Company’s ability to produce plant-based meats at scale. Specifically, Defendants repeatedly assured investors that Beyond Meat conducted “extensive testing” to “ensure manufacturability” of its plant-based meat products at commercial scale, and touted the success of the Company’s product tests with its large-scale partnerships as “very positive.” Further, as alleged in the complaint, Defendants blamed any delays in launching these large-scale partnerships on Covid-19.
In truth, according to the complaint, Beyond Meat struggled to manufacture its meat substitutes at scale to the specifications of its partners and suffered from widespread scaling issues, misaligned and delayed decision-making, and severe production delays. Further, according to the complaint, these problems led some partners to balk at the high price of Beyond Meat’s products and express doubts about the Company’s ability to produce them at commercial scale.
According to the complaint, the truth began to emerge on October 22, 2021, when Beyond Meat announced that the Company was reducing its third quarter net revenues outlook by up to $34 million, or 25%. As part of the announcement, Beyond Meat also revealed that the Company’s expenses and inventories were continuing to rise. Following these disclosures, the price of Beyond Meat stock declined by $12.82 per share, or nearly 12%. Then, on November 10, 2021, after the markets closed, Beyond Meat announced a $1.8 million inventory write-off, blaming Covid-19 and product repackaging costs. Following this disclosure, the price of Beyond Meat stock declined by $12.55 per share, or about 13%. However, according to the complaint, the Defendants continued to assure investors of the success of Beyond Meat’s partnerships.
According to the complaint, one week later, on November 17, 2021, Bloomberg published an article highlighting the delays in product roll out and execution challenges Beyond Meat was facing. That article, citing five former Beyond Meat employees, allegedly “laid bare the Company’s ongoing scaling problems and how those problems were tarnishing the Company’s relationships with potential partners.” Following this news, the price of Beyond Meat stock declined by $3.01 per share, or over 3.5%. Then, on December 9, 2021, multiple media sources reported that Taco Bell had cancelled a planned test of Beyond Carne Asada due to ongoing quality concerns. Following this news, the price of Beyond Meat stock declined by $5.88 per share, or nearly 8%.
Finally, on October 14, 2022, Beyond Meat announced the departure of several of its top executives, including its Chief Operating Officer, Chief Growth Officer, and Chief Financial Officer. Following this news, the price of Beyond Meat stock declined by $1.43 per share, or over 9.6%.
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If you have any questions about this Notice, your rights, or your interests, please contact:
Pamela Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
E-mail: pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
