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Lamb Weston sued over ‘artificially inflated’ share prices

Lamb Weston Holdings Inc. and two senior executives violated federal securities laws as the frozen-potato giant rolled out a software system, according to a class action lawsuit. Lamb Weston, based in Eagle, is a leading producer of french fries and other frozen-potato products sold around the world to restaurants and retailers. McDonald’s is a major customer, writes Wendy Culverwell in a news story published by Idaho Statesman and republished on Yahoo Finance.

The Cleveland Bakers and Teamsters Pension Fund is suing Lamb Weston, its president and CEO, Thomas Werner; and its chief financial officer, Bernadette Madarieta; alleging the company’s stock price was artificially inflated when the company misrepresented problems it was having with its new software system.

The pension fund sued on June 13 in federal district court in Boise. It seeks to represent the pension fund and any other investors who bought shares of Lamb Weston’s common stock between July 2023 and April 2024. The fund is based in Valley View, Ohio, a Cleveland suburb.

According to the lawsuit, Lamb Weston indicated it experienced the “usual bumps” as it rolled out the new software system, and as a result of a “premature launch,” Lamb Weston sales projections for its 2024 fiscal year “lacked a reasonable factual basis.” The result was that “shares of Lamb Weston common stock traded at artificially inflated prices.”

Lamb Weston has not issued a formal response to the lawsuit, which seeks a jury trial. A spokesperson could not be reached for comment this week, according to the Idaho Statesman news story.

Source: Original story by Idaho Statesman. Read the full story here. Republished by Yahoo Finance here
Related news release: Lamb Weston shareholder alert by former Louisiana Attorney General
Cover image: Credit Lamb Weston

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