SAN DIEGO and BERKELEY, Calif., June 16, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Annie's, Inc. (NYSE: BNNY) has filed a federal securities fraud class action complaint in the U.S. District Court for the Northern District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Act of 1934 between August 8, 2013 and June 3, 2014. Annie's is a producer, marketer, and distributor of over 135 organic meals, snacks, and condiments.
Annie's Is Accused of Ineffectively Detecting Misstatements Material to Financial Statements
According to the complaint, on June 2, 2014, shares of Annie's declined by $1.07 per share on the announcement that a material weakness in the company's internal control over financial reporting prevented Annie's from detecting misstatements in company's consolidated financial statement related to net sales, costs of goods sold, inventory, and accounts receivable. This material weakness required the company to make adjustments to its financial statements for 2012, 2013, and the first three quarters of 2014. The following day, on June 3, 2014, Annie's announced that PricewaterhouseCoopers LLP will be resigning as its independent registered public accounting firm following the completion of the Form 10-Q with the U.S. Securities and Exchange Commission. On this announcement, shares of Annie's declined nearly 8% to close at $30.07 per share on June 4, 2014.
The complaint further alleges that Annie's failed to disclose to investors that: (i) the company's historically used method for estimating certain trade allowances did not include all trade promotion costs; and (ii) the company's accounting for contract manufacturing did not sufficiently evaluate the valuation and accuracy of receivables and payables. As a result, Annie's lacked sufficient financial and internal controls, allowing financial results to be misstated and the financial statements were materially false and misleading.
Annie's Investors Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo LLP
If you invested in Annie's and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: http://www.robbinsarroyo.com/shareholders-rights-blog/annies-inc/
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP