SMPL Shareholder Alert: Investors With Losses May Seek to Lead the Class Action in The Simply Good Foods Company Securities Lawsuit - Contact SueWallSt

A securities class action alleges Simply Good Foods promised $135 million to $145 million in fiscal 2025 OWYN net sales and double-digit growth, while the brand later contracted nearly 17% and drew a $187 million impairment — SMPL fell from above $40 to under $11.

NEW YORK, Aug. 20, 2026 /PRNewswire/ -- SueWallSt notifies investors in The Simply Good Foods Company (NASDAQ: SMPL) that a class action has been filed on behalf of shareholders who purchased securities between October 24, 2024 and April 8, 2026. Check if you might be eligible to recover your investment losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

SMPL shares declined from Class Period highs above $40 per share to less than $11 per share, a drop of more than 70%, or over $29 per share. The Company recorded a cumulative $200 million impairment on OWYN assets, more than 70% of the $280 million purchase price. LEAD PLAINTIFF DEADLINE: October 13, 2026.

The Promise

The company projected fiscal 2025 OWYN net sales of $135 million to $145 million, a 20% to 30% increase, and told the market the integration work was underway and progressing as planned. Fiscal 2025 net sales growth of 9% was reported. As late as October 2025, management stated that OWYN's fiscal 2026 sales growth would be in the double-digit range and that the product issue was largely behind the business.

The Reality

Results allegedly revealed a very different picture. On April 9, 2026, the Company reported that OWYN quarterly sales had contracted by nearly 17% year over year, disclosed a $187 million impairment charge against OWYN brand intangible assets, and cut its fiscal 2026 net sales outlook to a range of negative 7% to negative 10%. The complaint alleges that a switch to an inferior pea protein supplier had already created taste, texture, and shelf-life problems, that key managers had departed after the acquisition, and that heavy discounting was being used while gross margins ran in the middle 30s against a roughly 40% target.

Promise vs. Actual: By the Numbers

• Promised fiscal 2025 OWYN net sales: $135 million to $145 million (20% to 30% growth)
• Promised fiscal 2026 OWYN growth: double digits. Actual second quarter fiscal 2026 OWYN sales: down nearly 17%
• Fiscal 2026 net sales outlook: cut to negative 7% to negative 10%
• OWYN purchase price: $280 million. Cumulative impairment: $200 million, including a $187 million charge
• Target gross margins near 40%; reported in the middle 30s
• Share price: above $40 at Class Period highs, under $11 by Class Period end

What the Lawsuit Alleges About the Gap

The complaint alleges the gap between projection and outcome was not a forecasting miss but the product of adverse facts allegedly known internally and not disclosed, including personnel losses, an allegedly bloated general and administrative structure, and promotional spending used to mask eroding margins.

"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. The complaint alleges that OWYN sales targets were reaffirmed while integration and product quality problems were allegedly already affecting the brand." -- Joseph E. Levi, Esq.

Learn more about the case or call (888) SueWallSt.

WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the SMPL Lawsuit

Q: What specific misstatements does the SMPL lawsuit allege? A: The complaint alleges The Simply Good Foods Company made materially false or misleading statements regarding the integration and performance of the OWYN acquisition, including that the integration was progressing as planned and that product quality issues were resolved, during the Class Period. When the OWYN sales contraction, the $187 million impairment, and the reduced fiscal 2026 outlook were disclosed, the stock price declined sharply.

Q: When did The Simply Good Foods Company allegedly mislead investors? A: The Class Period runs from October 24, 2024 to April 8, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.

Q: What court was the SMPL class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.

Q: What do SMPL investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my SMPL shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.

Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution. Timing depends on the court schedule, case developments, and whether the matter is dismissed, settled, or litigated further.

CONTACT:\

Levi & Korsinsky, LLP\

Joseph E. Levi, Esq.\

33 Whitehall Street, 27th Floor\

New York, NY 10004\

[email protected]\

Tel: (888) SueWallSt\

Fax: (212) 363-7171

Attorney Advertising. Prior results do not guarantee similar outcomes.

SOURCE SueWallSt.com