Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Lamb Weston Holdings, Inc. (LW)

NEW YORK, June 17, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Idaho on behalf of all persons and entities who purchased securities of Lamb Weston Holdings, Inc. (“Lamb Weston” or the “Company”) (NYSE: LW) between July 25, 2023 and April 3, 2024, inclusive (the “Class Period”).

The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) Defendants knew of, or recklessly disregarded, problems associated with the ERP system that would hinder its successful implementation; (ii) despite those issues, Lamb Weston pushed ahead with its implementation of an ERP system that was not ready to go live, knowing that a premature roll-out would have a material negative impact on Lamb Weston’s business and operations; and (iii) to the extent Lamb Weston purported to warn of risks regarding the negative impacts from an unsuccessful implementation of the ERP system, defendants omitted that such risks had already begun to materialize.

The Complaint further alleges that on April 4, 2024, Lamb Weston disclosed significant problems with its transition to the new ERP system, including that the system did not function properly, causing Lamb Weston to lose over $130 million in sales during its third quarter of fiscal 2024 and to reduce its sales guidance for the full fiscal year by $330 million, at the midpoint. On this news, the price of Lamb Weston stock fell more than 19%, according to the Lamb Weston class action lawsuit.

Investors who purchased or otherwise acquired shares of Lamb Weston should contact the Firm prior to the August 12, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.