Robbins LLP reminds investors that a shareholder filed a class action on behalf of purchasers of Beyond Meat, Inc. (NASDAQ: BYND) common stock between May 5, 2020 and October 13, 2022. Beyond Meat is a Los Angeles-based producer of plant-based meat substitutes.
What is this Case About: Beyond Meat, Inc. (BYND) Misled Investors Regarding its Ability to Produce Products at Scale to the Specifications of its Key Customers
According to the complaint, during the class period, Beyond Meat misled investors by boasting about the success of its product tests with its large-scale partnerships, including prominent food retailers like McDonalds, Starbucks, KFC, Pizza Hut, and Taco Bell. Beyond Meat assured investors and partners that it would “ensure manufacturability” through “extensive testing,” and that it was capable of manufacturing the unique plant-based meat products at commercial scale.
In truth, Beyond Meat was unable to manufacture its meat substitutes at scale to the specifications of its partners. Further, Beyond Meat suffered from widespread scaling issues, particularly misalignment and delayed decision-making, which led to corresponding production delays. Such issues were exacerbated by Beyond Meat’s disjointed production lines. 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.
The truth began to emerge on October 22, 2021, when Beyond Meat reduced its third quarter net revenues outlook by 25%. On this news the Company's stock price declined by $12.82 per share, or nearly 12%, from $108.62 per share to $95.80 per share. As the truth continued to reveal itself, the Company's stock price continued to decline, closing at $13.35 per share at the end of the class period.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Beyond Meat, Inc. Shareholders who want to act as lead plaintiff for the class must file their papers by July 10, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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