NEW YORK, June 12, 2019 /PRNewswire/ -- Scott+Scott Attorneys at Law LLP ("Scott+Scott"), an international securities and consumer rights litigation firm, is investigating whether certain directors and officers of Kraft Heinz Company ("Kraft") (NASDAQ: KHC) breached their fiduciary duties to Kraft and its shareholders. If you are a Kraft shareholder, you may contact attorney Joe Pettigrew for additional information: 844-818-6982 or firstname.lastname@example.org.
Scott+Scott is investigating whether certain of Kraft's directors made, or allowed Kraft to make, false and/or misleading statements regarding: (1) Kraft's inadequate internal controls regarding its procurement area; (2) Kraft's eventual writedown of a significant amount of goodwill and intangible assets in its Kraft natural cheese, Oscar Mayer cold cuts, and Canada retail businesses due to supply chain issues; and (3) Kraft's failure to advise investors of the foregoing. Kraft's public statements were thus materially false and misleading at all relevant times. Additionally, Kraft may have allowed 3G Global Food Holdings to sell over $1.2 billion of Kraft stock at artificially inflated prices in August 2018.
On February 21, 2019, Kraft announced it had improperly accounted for the costs of products sold and that it recorded impairment charges of $15.4 billion to lower the carrying amount of goodwill in certain reporting units, primarily U.S. Refrigerated and Canada Retail, and certain intangible assets, primarily the Kraft natural cheese and Oscar Mayer cold cuts trademarks. Kraft also announced receipt of an SEC subpoena regarding an investigation into Kraft's accounting policies, procedures, and internal controls and that Kraft had been operating with material weaknesses in its system of internal controls over financial reporting. On this news, Kraft stock declined approximately 27.5%, from $48.18/share to $34.95/share.
What You Can Do
If you are a Kraft shareholder, you may have legal claims against Kraft's directors and officers. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Joe Pettigrew toll-free at 844-818-6982 or email@example.com.
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, and Ohio.
SOURCE Scott+Scott Attorneys at Law LLP