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Flowers Foods is a producer and marketer of packaged bakery foods in the United States. The Company operates 46 bakeries that produce breads, buns, rolls, snack cakes, pastries, and tortillas. The Company's products are sold regionally through a direct store delivery network that encompasses the East, South, and Southwest, and are sold nationwide via delivery to retailer's warehouses.
The Complaint 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 made false and/or misleading statements and/or failed to disclose that: (i) the Company's labor practices were not in compliance with applicable federal laws and regulations; (ii) this non-compliance exposed the Company to legal liability and/or negative regulatory action; and (iii) as a result of the foregoing, Defendants' statements about Flowers Foods' business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On August 10, 2016, Flowers Foods disclosed in a Current Report filed with the U.S. Securities and Exchange Commission that the U.S. Department of Labor had notified Flowers Foods that the Company was scheduled for a compliance review under the Fair Labor Standards Act. The Company further stated that it intended to cooperate with the Department, and that because the review process was confidential, Flowers Foods would not comment further at that time.
On this news, Flowers Foods' stock price fell $1.60 per share, or 9%, to close at $16.15 per share on August 10, 2016, on unusually heavy trading volume.
After the market closed on August 10, 2016, the Company issued a press release announcing its Q2 2016 financial results. Therein, the Company announced revenue of $935 million, which fell below the Wall Street projection of $949 million.
On this news, Flowers Foods' stock price fell $1.20 per share, or 7.4%, to close at $14.95 per share on August 11, 2016, on unusually heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP