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Oklahoma City, OK (March 4, 2019) – On February 24, 2019, a securities class action lawsuit was filed in the United States District Court for the Northern District of Illinois against The Kraft Heinz Company (NASDAQ: KHC). 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 May 4, 2017 through February 21, 2019. According to the lawsuit, defendants made false and/or misleading statements and/or failed to disclose that: (1) Kraft’s internal controls, specifically with respect to its procurement area, were inadequate; (2) Kraft would be forced to write down a significant amount of goodwill and certain intangible assets in its Kraft natural cheese business, its Oscar Mayer cold cuts business, and its Canada retail business due to supply chain issues; (3) Kraft failed to advise investors of the foregoing issues; and (4) as a result, Kraft’s public statements were materially false and misleading at all relevant times.
On February 21, 2019, post-market, Kraft Heinz reported its financial and operating results for the fourth quarter and full year 2018, including earnings of $0.84 per share on revenue of $6.89 billion. These results fell short of market expectations for earnings of $0.94 per share on revenue of $6.93 billion. Kraft Heinz also cut its quarterly dividend to $0.40 per share and announced receipt of a U.S. Securities and Exchange Commission subpoena in October 2018 associated with an investigation into the Company’s procurement accounting policies. Following these disclosures, Kraft Heinz’s stock price fell $13.23 per share, or 27.42%, per share, or 41.16%, to close at 34.95 on February 22, 2019.
Plaintiff seeks to recover damages on behalf of all The Kraft Heinz Company 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 Thursday, April 25, 2019 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.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at email@example.com