Securities Class Action Filed Against Boulder Brands, Inc.
Violations of federal securities laws as a result of a series of materially false statements. The Complaint alleges that, during the Class Period, Defendants issued materially false and misleading statements and/or failed to disclose that the Company was having problems with its inventory management and the integration of recent acquisitions, and that its ongoing mix shift to lower margin products made its previously announced margin improvements unattainable. As a result of Defendants’ false statements and omissions, Boulder stock traded at artificially inflated prices during the Class Period, reaching a high of $17.94 per share on April 2, 2014. Then on October 22, 2014, Boulder provided an update on its anticipated third quarter 2014 financial results and its outlook for the fourth quarter of 2014, disclosing that during “the third quarter, we faced a number of headwinds that impacted our financial results.” The Company further disclosed that the “the mix shift of our fast-growing, lower margin Natural segment is significantly outpacing our higher margin Balance segment and is therefore putting increased pressure on our gross margins.” According to the Complaint, the Company additionally revealed it was “expecting lower shipments due to a normalizing of certain inventories at our largest customer.” On this news, the price of Boulder stock fell by 23%, from a closing price of $12.73 per share on October 21, 2014 to close at $9.62 per share on October 22, 2014, on volume of more than 9 million shares traded. The next day, Boulder’s stock price dropped an additional 6%, closing on October 23, 2014 at $8.99 per share. Filed in D. Col.
Lead Plaintiff Deadline: The deadline to file for lead plaintiff in this action is 6/1/2015.
Join This Action: To apply to join this action and be represented by Shepherd, Finkelman, Miller & Shah, LLP, please click here for a certification form to submit your information.
Send Us Information: If you have information about this action that you would like to provide us, please click here.