NEW YORK, April 02, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in The Kraft Heinz Company ("Kraft" or the "Company")(NASDAQ: KHC) of the April 25, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Kraft stock or options between May 4, 2017 and February 21, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/KHC . There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT: FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. rgonnello@faruqilaw.com Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of all those who purchased Kraft securities between May 4, 2017 and February 21, 2019 (the "Class Period"). The case, Hedick v. Kraft Heinz Company et al , No. 19-cv-01339 was filed on February 24, 2019.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Kraft’s internal controls, specifically with respect to its procurement area, were inadequate; (2) Kraft would be forced to write down a significant amount of goodwill and certain intangible assets in its Kraft natural cheese business, its Oscar Mayer cold cuts business, and its Canada retail business due to supply chain issues; (3) Kraft failed to advise investors of the foregoing issues; and (4) as a result, Kraft’s public statements were materially false and misleading at all relevant times.
On February 21, 2019, after the market closed, Kraft announced its earnings for the fourth quarter of 2018. The Company announced an impairment charge of $15.4 billion. That same day, Kraft disclosed that it had received a subpoena from the Securities and Exchange Commission in October 2018 in connection with the Company’s procurement function.
On this news, Kraft's share price fell from $48.18 per share on February 21, 2019 to a closing price of $34.95 on February 22, 2019: a $13.23 or a 27.46% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Kraft's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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