LOS ANGELES (Legal Newsline) - A union's retirement fund is suing Beyond Meat in a shareholder class action, claiming it deceived investors with claims or large-scale partnerships with chains like McDonald's.
Retail Wholesale Department Store Union Local 338 Retirement Fund filed its lawsuit May 11 in Los Angeles federal court, claiming the company, which makes plant-based meat substitutes, failed to deliver on its claims it could manufacture enough to supply restaurants like Starbucks, KFC, Pizza Hut and Taco Bell.
While blaming delays on COVD-19, executives sold their personal shares, the suit says. Former Chief Financial Officer Mark Nelson sold 440,00 shares for more than $58 million in proceeds, it adds.
On Oct. 22, 2021, the company reduced its third quarter net revenues outlook by up to $34 million, or 25%, the suit says. Later that year, Taco Bell cancelled a planned product test due to quality concerns, it says.
The proposed class period would apply to purchasers of stock between May 5, 2020 to Oct. 13, 2022. The lawsuit says as a result of the defendants' actions, Beyond Meat's stock price went from $108.62 per share to $13.35 by October 2022.
Bernstein Litowitz is representing the plaintiff.