SAN DIEGO, June 3, 2016 /PRNewswire/ -- Johnson & Weaver, LLP (Johnson & Weaver) announces that it has filed a class action lawsuit in the United States District Court for the District of New Jersey on behalf of purchasers of Freshpet, Inc. ("Freshpet") (NASDAQ: FRPT) securities during the period between April 1, 2015 and November 11, 2015 (the "Class Period").
The complaint charges Freshpet and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Freshpet manufactures and markets natural fresh foods, refrigerated meals, and treats for dogs and cats in the United States and Canada. Freshpet's products are sold to consumers through a network of Company-owned branded refrigerators, known as Freshpet Fridges, which are located in grocery stores and other retail outlets.
The complaint alleges that throughout the Class Period, defendants failed to disclose material adverse facts about the Company's true financial condition, business and prospects. Specifically the complaint alleges that: (a) one of the Company's material customers, Target Corp., was undergoing a corporate reorganization and, accordingly, was delaying the installation of a significant number of Freshpet Fridges; (b) two of the Company's supermarket customers were experiencing financial hardships such that it was likely that any Freshpet Fridges located in their respective stores would soon have to be removed; and (c) due to the foregoing, the Company was not growing its overall number of installed Freshpet Fridges at the levels communicated to investors and was tracking well below internal forecasts for such placements.
On August 11, 2015 Freshpet announced its financial results for the second quarter of 2015, the period ending June 30, 2015, and revealed that the Company was experiencing weaker gross margins and slowing fridge growth. As a result, on August 12, 2015, the price of Freshpet common stock declined $0.87 per share, or 6%, to close at $13.73 per share.
Then, on November 11, 2015 Freshpet announced its financial results for the third quarter of 2015, the period ending September 30, 2015. For the quarter, the Company reported net sales of $30.6 million, adjusted EBITDA of $2.3 million, and Freshpet Fridges of 14,670. In reaction to this announcement, on November 12, 2015, the price of Freshpet common stock fell $2.09 per share, or 25%, to close at $6.28 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of Freshpet securities during the Class Period (the "Class"). The plaintiff is represented by Johnson & Weaver, which has extensive experience in prosecuting shareholder class and derivative actions nationwide.
If you wish to serve as lead plaintiff, you must move the Court no later than June 20, 2016. If you wish to discuss this action, have any questions concerning this notice, or your rights or interests, or if you would like to request a copy of the filed complaint, please contact lead analyst Jim Baker ([email protected]) by email or by phone at 619-814-4471. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
About Johnson & Weaver, LLP: Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.