NEW YORK, Jan. 17, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential misconduct at Flowers Foods, Inc. ("Flowers" or the "Company") (NYSE: FLO).
The investigation focuses on 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 current report on 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, and 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.'" As a result of the foregoing, Flowers is currently facing a securities class action lawsuit.