Silver Law Group, a nationally-recognized class action law firm representing investors, is investigating Conagra Brands (CAG) on reports that the company may have violated the law by making misleading statements about their ability to integrate Pinnacle Foods (PF) into its business.
Investors With Losses In Conagra (CAG) May Be Able To Recover Losses
Conagra Acquisition Of Pinnacle Foods (PF)
Conagra is a $14 billion packaged foods company and component of the S&P 500 that owns brands such as Chef Boyardee, Healthy Choice, and Slim Jim.
In June, 2018 Conagra announced that it would be acquiring Pinnacle Foods (PF) for $8.1 billion. Conagra CEO Sean Connolly publicly assured investors that Conagra had done its due diligence into Pinnacle, which owns brands such as Birds Eye and Duncan Hines, and said that the two companies were a natural fit for each other. The Pinnacle acquisition was described as a “no brainer” that would help the company expand its frozen food and snack offerings.
Two months after the merger closed in October 2018, Conagra announced quarterly earnings and revealed that some of Pinnacle’s brands were struggling. The market was shocked by this disclosure and Conagra’s stock got hammered, falling 30% in three trading sessions and wiping out billions of dollars in value.
Lawsuit Against Conagra
A pension fund has filed a lawsuit in Illinois federal court alleging that Conagra tricked investors into approving its acquisition of Pinnacle Foods Inc.
The complaint states: “Unbeknownst to shareholders … Conagra and its management were aware or recklessly disregarded that the transaction would not result in anywhere near the sort of benefits that defendants had publicly represented.”
The lawsuit alleges that Conagra’s misstatements and omissions “overvalued and artificially inflated” Pinnacle’s price. The lawsuit is seeking to represent anyone who purchased Conagra stock between June 27, 2018 and December 19, 2018, and says those investors are entitled to damages, interest, and court fees. No class has been certified and investors may still apply to be the lead plaintiff.
If you were a Conagra or Pinnacle shareholder and want to learn more about your legal rights contact the Silver Law Group.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Please contact Scott Silver of the Silver Law Group for a free consultation at firstname.lastname@example.org or toll free at (800) 975-4345.