Inventure Foods, Inc.
Period: Mar 3, 2016 to Mar 16, 2017
Lead Plaintiff Deadline: May 29, 2017
Summary of Case:
A securities class action has been filed against Inventure Foods, Inc. (NASDAQ: SNAK) on behalf of a class (the "Class") consisting of persons and entities that acquired Inventure Foods securities between March 3, 2016, and March 16, 2017. This case has been filed in the USDC - Arizona.
The complaint alleges that on March 9, 2017, the Company disclosed that it would not be able to timely file its annual report on Form 10-K for its fiscal year ended December 31, 2016 and that it expected to file a notification of late filing on Form 12b-25 with the SEC to obtain a 15-day extension of the filing deadline for the Form 10-K. The Company claimed it needed additional time to complete certain intangible asset and goodwill impairment tests, and that, as a result, the Company's independent registered public accounting firm had not completed its audit of the Company's financial statements and the assessment of the Company's internal control over financial reporting.
Then, on March 16, 2017, the Company filed the notice of late filing on Form 12b-25. Therein, the Company disclosed that it anticipated that its statements of operations contained in its 2016 annual report would differ materially from those reported for its fourth quarter and fiscal year 2015 in its press release filed with the SEC on March 3, 2016. On this news, the price of Inventure Foods common stock fell $0.13 per share, or 2.5%, to close at $4.91 per share on March 17, 2017, on unusually heavy trading volume. The stock price continued to decline in the following trading days, falling $0.48 per share (9.7%) on March 20, 2017, and $0.41 per share (9.2%) on March 21, 2017, to close at $4.02 per share on March 21, 2017.
The filed complaint alleges claims under the Securities Exchange Act of 1934. According to the complaint, throughout the Class Period, Defendants made false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose: (1) that the Company lacked adequate internal controls over accounting and financial reporting; (2) that, as a result, the Company's statements of operations in its fiscal year 2015 results press release contained incorrect figures; and (3) that, as a result of the foregoing, Defendants' statements about Inventure Foods's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
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