Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Boulder Brands, Inc.
Oklahoma City, OK (April 6, 2015) – On April 1, 2015, a securities class action lawsuit was filed in the United States District Court for the District of Colorado against Boulder Brands, Inc. (NASDAQ: BDBD). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is December 23, 2013 through October 22, 2014. More specifically, this litigation was filed because the Company failed to disclose that the Company was having problems with its inventory management and the integration of recent acquisitions, and that the Company’s ongoing mix shift to lower margin products made its previously announced margin improvements unattainable. As a result of the Company’s false statements, the Company’s stock traded at artificially inflated prices during the Class Period.
On October 22, 2014, the Company issued a press release providing an update on its anticipated third quarter 2014 financial results and its outlook for the fourth quarter 2014. Boulder Brands disclosed that during "the third quarter, we faced a number of headwinds that impacted our financial results. Smart Balance continued to face challenges in the spreads category, resulting in a larger than expected decline." The Company further disclosed that "the mix of shift of our fast-growing, lower margin Natural segment is significantly outpacing our higher margin Balance segment and is therefore putting increased pressure on our gross margins." In addition, the Company revealed it was "expecting lower shipments due to a normalizing of certain inventories at our largest customer." On this news, the Company’s shares declined closing at $8.99 per share on October 23, 2014.
Plaintiff seeks to recover damages on behalf of all Boulder Brands, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, June 1, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Mon, April 6, 2015
by Robin Hester filed under