Investors filed a class-action lawsuit against The Simply Good Foods Company (SMPL). The suit covers shareholders who purchased common stock between October 24, 2024, and April 8, 2026.
The complaint alleges the company misled investors regarding the integration of its Only What You Need (OWYN) brand. Plaintiffs claim the integration failed following the loss of essential managerial personnel.
On April 9, 2026, the company reported a nearly 17% year-over-year decline in OWYN quarterly sales. The announcement also revealed a $187 million impairment charge against the brand.
Following these disclosures, the company's stock price declined by more than 27% within two days.