Case Summary

Lamb Weston

NYSE: LW

Case Details

  • Cleveland Bakers and Teamsters Pension Fund v. Lamb Weston Holdings, Inc. et al.
  • Class Period:July 25, 2023 - April 3, 2024
  • Date Filed:June 13, 2023
  • Jurisdiction:U.S. District Court, District of Idaho
  • Docket Number: 1:24-cv-00282
  • Lead Plaintiff Deadline: August 12, 2024
Days Left to
Seek Plaintiff
25

Overview

A class action lawsuit has been filed against Lamb Weston Holdings, Inc. (“Lamb Weston” or the “Company”) (NYSE: LW) and certain of the Company’s former and current senior executive officers alleging violations of the federal securities laws.  The Lamb Weston class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired shares of Lamb Weston common stock between July 25, 2023, and April 3, 2024, both dates inclusive (the “Class Period”).  Investors have until August 12, 2024, to seek appointment as lead plaintiff of the Lamb Weston class action lawsuit.

Lamb Weston is a large producer of frozen potato products, which the Company sells to restaurants and retailers around the world.  Lamb Weston counts fast-food chain, McDonald’s, as one of its largest customers.

On July 25, 2023, Lamb Weston announced the completion of the design of a new Enterprise Resource Planning (“ERP”) software system that the Company would work to implement across its operations.  The new ERP system was critically important to Lamb Weston.  The system would interface with the most important aspects of Lamb Weston’s business and operations, including, among other things, inventories, and customer order shipments.  According to the Company, the ERP system would drive efficiency through increased automation.  In late November 2023, the Company transitioned some of its previous financial and operating systems to the new ERP system.

The Lamb Weston class action lawsuit alleges that Defendants knew of, or recklessly disregarded, significant problems in the functionality of the new ERP system that would impact its successful implementation.  Notwithstanding those problems, Lamb Weston proceeded with the implementation, knowing that a premature launch would negatively impact its business and operations.  As a result, the Company’s statements concerning its business, operations, and prospects, including its financial guidance for fiscal 2024, lacked a reasonable factual basis.

On April 4, 2024, Lamb Weston disclosed that it experienced significant challenges in its transition to the new ERP system.  The disastrous roll-out caused the Company to lose $135 million in sales during the third quarter of fiscal 2024 and necessitated a $330 million reduction to its sales guidance for the full fiscal year.  As a result of these disclosures, the price of Lamb Weston stock declined by $19.59 per share, or over 19%.

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If you purchased or otherwise acquired shares of Lamb Weston common stock between July 25, 2023, and April 3, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Lamb Weston lawsuit is August 12, 2024.

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