BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Beyond Meat, Inc. (“Beyond Meat” or the “Company”) (NASDAQ: BYND) common stock between May 5, 2020 and October 13, 2022, inclusive (the “Class Period”). Beyond Meat investors have until July 10, 2023 to file a lead plaintiff motion.
Investors suffering losses on their Beyond Meat investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On October 22, 2021, Beyond Meat announced that it was reducing its third quarter revenue outlook by up to $34 million. The Company also disclosed that its expenses and inventories were continuing to rise. On this news, Beyond Meat’s stock price fell $12.82, or 11.8%, to close at $95.80 per share on October 22, 2021, thereby injuring investors.
Then, on November 10, 2021, Beyond Meat announced a $1.8 billion write-off of unsold inventory. On this news, Beyond Meat’s stock price fell $12.55, or 13.3%, to close at $81,93 per share on November 11, 2021.
Then on November 17, 2021, Bloomberg reported on Beyond Meat’s production delays and execution challenges, stating that former employees claimed that there were “significant internal problems” stemming from “confusing and misalignment” and “belated decision-making” that corresponded with exacerbated production delays. On this news, Beyond Meat’s stock price fell $3.01, or 3.6%, to close at $80.47 per share on November 17, 2021.
Then, on December 9, 2021, after the market closed, media sources reported that a planned product test between Beyond Meat and Taco Bell had been cancelled due to ongoing quality concerns. On this news, Beyond Meat’s stock price fell $5.58, or 7.8%, to close at $64.41 per share on December 10, 2021.
Then, on October 14, 2022, Beyond Meat announced departures of several top executives, including the Company’s Chief Operating Officer, Chief Growth Officer, and Chief Financial Officer. On this news, Beyond Meat’s stock price fell $1.43, or 9.7%, to close at $13.35 per share on October 14, 2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Beyond Meat was unable to manufacture its meat substitutes at scale to the specifications of its partners; (2) Beyond Meat suffered from widespread scaling issues, particularly misalignment and delayed decision-making, which led to corresponding production delays. Such issues were exacerbated by Beyond Meat’s disjointed production lines; (3) 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; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Beyond Meat securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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