NEW YORK, July 15, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors of the approaching August 12, 2022 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed on behalf of those who acquired Lamb Weston Holdings, Inc. (“Lamb Weston” or the “Company”) (NYSE: LW) securities during the period of July 25, 2023 through April 3, 2024, inclusive (“the Class Period”).
[Click here to learn more about the class action]
On April 4, 2024, Lamb Weston reported its financial results for its fiscal third quarter 2024 and disclosed significant problems with its transition to its new Enterprise Resource Planning (ERP) software system. Those problems caused Lamb Weston to lose over $130 million in sales during the third quarter. The unsuccessful ERP transition resulted in Lamb Weston’s “reduced visibility into finished goods inventory at [ ] distribution centers,” which negatively impacted the Company’s ability to fulfill customer orders, resulting in shipment delays and cancelled orders. In total, Lamb Weston’s ERP system roll-out negatively impacted the Company’s net sales by $135 million, net income by $72 million, and adjusted earnings before interest, taxes, depreciation, and amortization by $95 million. Lamb Weston also cut its sales guidance range for fiscal 2024 by $330 million, at the midpoint. The Company disclosed that it expected sales volumes in its fiscal fourth quarter 2024 to be negatively impacted by some customers that were affected by Lamb Weston’s botched ERP transition, as those customers turned to Lamb Weston’s competitors to meet their needs. On this news, the price of Lamb Weston shares declined by $19.59 per share, or approximately 19.46%, from $100.68 on April 3, 2024 to close at $81.17 on April 4, 2024.
The lawsuit alleges that Lamb Weston made numerous material misrepresentations and omissions regarding the design and implementation of Lamb Weston’s new ERP system. Specifically, throughout the Class Period, the Company represented that, through the design of the Company's new ERP system, Lamb Weston had “strengthen[ed] [its] operational infrastructure.” The Company also downplayed any issues it experienced with the implementation of the system as merely “usual bumps,” and told investors that its financial guidance for fiscal 2024 appropriately accounted for any negative financial impact associated with the system's deployment.
If you purchased or otherwise acquired Lamb Weston securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
