ConAgra Pinnacle Brands Acquisition Investigation
Girard Sharp is investigating potential violations of state and federal law by ConAgra in connection with its October 2018 acquisition of Pinnacle Foods. The investigation centers on potential misrepresentations and omissions by ConAgra concerning the strength of several of Pinnacle’s brands. The transaction was valued at approximately $10.9 billion.
Shortly after the Pinnacle merger closed, ConAgra announced its quarterly earnings results, revealing that for several of the acquired Pinnacle brands, “[n]et sales were below expectations due to weak performance.” ConAgra stock then declined $8.13, or 30%, over three trading sessions to close at $20.96 on December 24th, 2018.
On February 22, 2019, a proposed class action was filed against ConAgra and several of its directors and officers. The plaintiff alleged that ConAgra and its management were aware of the true condition of Pinnacle’s brands (and therefore, the value of acquiring Pinnacle) but failed to disclose the truth to investors.
If you are a current or former ConAgra shareholder and believe you have sustained investment losses, you may be entitled to compensation. Protect your rights and contact a Girard Sharp securities attorney for a free and confidential case consultation by calling toll-free at (415) 981-4800 or by filling out the form below:
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For a free consultation about your potential claims, contact one of our investment fraud attorneys at (415) 981-4800.