NEW YORK, May 20, 2023 /PRNewswire/ — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Beyond Meat, Inc. (“Beyond Meat” or the “Company”) (NASDAQ: BYND) and reminds investors of the July 10, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Beyond Meat stock or options between May 5, 2020 and October 13, 2022 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/BYND.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
Beyond Meat is a global producer of plant-based meat substitutes such as Beyond Burgers, Beyond Sausages, Beyond Meatballs, and Beyond Pepperoni. The Company sought to build “meat directly from plants” by faithfully replicating the look, taste, and texture of animal meat using only vegan, non-genetically modified ingredients. Beyond Meat found success creating small, sample-sized prototypes of its product offerings and, subsequently, became the best-performing IPO in nearly two decades when it went public in 2019. After going public, Beyond Meat launched a series of high-profile partnerships with foodservice providers such as Starbucks, McDonalds, KFC, Pizza Hut, and Taco Bell.
The complaint alleges that, throughout the Class Period, Defendants made numerous materially false and misleading statements and omissions concerning the Company’s ability to produce plant-based meats at scale. Specifically, Defendants repeatedly assured investors that Beyond Meat conducted “extensive testing” to “ensure manufacturability” of its plant-based meat products at commercial scale, and touted the success of the Company’s product tests with its large-scale partnerships as “very positive.” Further, Defendants blamed any delays in launching these large-scale partnerships on Covid-19.
In reality, Beyond Meat struggled to manufacture its meat substitutes at scale to the specifications of its partners. According to current and former employees of the Company, Beyond Meat suffered from widespread scaling issues, misaligned and delayed decision-making, and severe production delays. These problems led some partners to balk at the high price of Beyond Meat’s products and express doubts about the Company’s ability to produce them at commercial scale. As a result of Defendants’ misrepresentations and omissions, Beyond Meat common stock traded at artificially inflated prices during the Class Period.
The truth began to emerge on October 22, 2021, when Beyond Meat announced that the Company was reducing its third quarter net revenues outlook by up to $34 million, or 25%. As part of the announcement, Beyond Meat also revealed that the Company’s expenses and inventories were continuing to rise. As a result of these disclosures, the price of Beyond Meat stock declined by $12.82 per share, or nearly 12%. Then, on November 10, 2021, after the markets closed, Beyond Meat announced a $1.8 million inventory write-off, blaming Covid-19 and product repackaging costs. As a result of this disclosure, the price of Beyond Meat stock declined by $12.55 per share, or nearly 13%. However, Defendants continued to assure investors of the success of Beyond Meat’s partnerships.
One week later, on November 17, 2021, Bloomberg published an article highlighting the delays in product roll out and execution challenges Beyond Meat was facing. That article, citing five former Beyond Meat employees, laid bare the Company’s ongoing scaling problems and how those problems were tarnishing the Company’s relationships with potential partners. In response to this news, the price of Beyond Meat stock declined by $3.01 per share, or over 3.5%. Then, on December 9, 2021, multiple media sources reported that Taco Bell had cancelled a planned test of Beyond Carne Asada due to ongoing quality concerns. On this news, the price of Beyond Meat stock declined by $5.88 per share, or nearly 8%. Following these disclosures, Beyond Meat continued to assure investors that its product testing was going well.
Finally, on October 14, 2022, Beyond Meat announced the departure of several of its top executives, including its Chief Operating Officer, Chief Growth Officer, and Chief Financial Officer. This news caused the price of Beyond Meat stock to decline by $1.43 per share, or over 9.6%.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Beyond Meat’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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