Federman & Sherwood Investigates Flowers Foods, Inc. For Possible Violations of Federal Securities Laws
Oklahoma City, OK (January 17, 2017) – The law firm of Federman & Sherwood has initiated an investigation into Flowers Foods, Inc. [NYSE: FLO] with respect to possible violations of federal securities laws.
Flowers Foods, Inc. is a company that operates two business segments: a direct-store-delivery segment and a warehouse delivery segment and is headquartered in Thomasville, Georgia. Federman & Sherwood’s investigation focuses on allegations of whether the Company’s Board of Directors and/or its officers committed mismanagement and breached their fiduciary duties in connection with the Company’s labor practices. On August 10, 2016, Flowers filed a Form 8-K with the SEC stating that "[o]n the afternoon of August 9, 2016, the U.S. Department of Labor (the 'Department') notified Flowers Foods, Inc. that it has been scheduled for a compliance review under the Fair Labor Standards Act."
That same day, The Wall Street Journal ("WSJ") published an article concerning the compliance review, stating that the Company "faces lawsuits in various states brought by delivery drivers who allege the company violated the FLSA by misclassifying them as independent contractors, causing them to miss out on overtime pay, benefits and other compensation given to employees." Additionally, the WSJ article quoted an analyst with Pivotal Research Group who stated that "[i]f the Labor Department ultimately finds Flowers in violation of the FLSA, the company's potential liability could top $1 billion in 'back wages, penalties, fines, health care and so on.'"
If you currently own shares in Flowers Foods, Inc., please click here to download and complete our Certification of Investment. If you have any information to assist in our investigation, or have questions or concerns regarding this notice or your rights or interests in this matter, or you may contact William B. Federman with any questions you may have regarding this investigation. Federman & Sherwood has extensive nationwide experience in representing investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases across the country.
Posted on Tue, January 17, 2017
by Nancy Beatty filed under