The law firm Bleichmar Fonti & Auld LLP announced on July 22, 2026, that it has launched an investigation into The Simply Good Foods Company for potential securities fraud. The investigation centers on whether the company made false and misleading statements to investors regarding the expansion of its Quest and OWYN-branded protein products.
This action follows the company's April 9, 2026, announcement of a 9.4% year-over-year decline in quarterly sales and a significant cut to its 2026 guidance. At the time, the company disclosed product quality and marketing execution issues and a $249 million impairment charge. This news previously caused the stock to drop over 18% in one day.