Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Boulder Brands, Inc.
02 April 2015 - 01:00PM
Business Wire
Robbins Geller Rudman & Dowd LLP (“Robbins Geller”)
(http://www.rgrdlaw.com/cases/boulderbrands/) today announced that
a class action has been commenced in the United States District
Court for the District of Colorado on behalf of purchasers of
Boulder Brands, Inc. (“Boulder”) (NASDAQ:BDBD) common stock during
the period between December 23, 2013 and October 22, 2014 (the
“Class Period”).
If you wish to serve as lead plaintiff, you must move the Court
no later than 60 days from today. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff’s counsel, Darren Robbins of
Robbins Geller at 800-449-4900 or 619-231-1058, or via e-mail at
djr@rgrdlaw.com. If you are a member of this class, you can view a
copy of the complaint as filed or join this class action online at
http://www.rgrdlaw.com/cases/boulderbrands/. 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.
The complaint charges Boulder and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
Boulder is a company that markets and manufactures a wide array of
consumer food products for sale primarily in the United States,
Canada and the United Kingdom.
The complaint alleges that during the Class Period, defendants
issued materially false and misleading statements and/or failed to
disclose adverse facts concerning the Company’s business and
prospects. Specifically, defendants failed to disclose that the
Company was having problems with its inventory management and the
integration of recent acquisitions, and that the Company’s ongoing
mix shift to lower margin products made its previously announced
margin improvements unattainable. As a result of defendants’ false
statements and omissions, Boulder stock traded at artificially
inflated prices during the Class Period, reaching a high of $17.94
per share on April 2, 2014.
Then, on October 22, 2014, Boulder provided an update on its
anticipated third quarter 2014 financial results and its outlook
for the fourth quarter of 2014, disclosing that during “the third
quarter, we faced a number of headwinds that impacted our financial
results.” The Company further disclosed that the “the mix shift of
our fast-growing, lower margin Natural segment is significantly
outpacing our higher margin Balance segment and is therefore
putting increased pressure on our gross margins.” In addition, the
Company revealed it was “expecting lower shipments due to a
normalizing of certain inventories at our largest customer.” On
this news, the price of Boulder stock collapsed 23%, falling from a
closing price of $12.73 per share on October 21, 2014 to close at
$9.62 per share on October 22, 2014, on volume of more than 9
million shares traded. The next day, Boulder’s stock price dropped
an additional 6%, closing on October 23, 2014 at $8.99 per
share.
Plaintiff seeks to recover damages on behalf of all purchasers
of Boulder common stock during the Class Period (the “Class”). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in
actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S.
and international institutional investors in contingency-based
securities and corporate litigation. The firm has obtained many of
the largest securities class action recoveries in history,
including the largest securities class action judgment. Please
visit http://www.rgrdlaw.com for more information.
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Robbins Geller Rudman & Dowd LLPDarren Robbins, 800-449-4900
or 619-231-1058djr@rgrdlaw.com