Lawsuit filed for Investors who lost money with shares of Lamb Weston Holdings, Inc. (NYSE: LW)

An investor, who purchased shares of Lamb Weston Holdings, Inc. (NYSE: LW), filed a lawsuit over alleged violations of Federal Securities Laws by Lamb Weston Holdings, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Lamb Weston Holdings, Inc. (NYSE: LW) have certain options and for certain investors are short and strict deadlines running. Deadline: August 12, 2024. NYSE: LW investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Eagle, ID based Lamb Weston Holdings, Inc. produces, distributes, and markets frozen potato products worldwide. The company operates through four segments: Global, Foodservice, Retail, and Other.

Lamb Weston Holdings, Inc. reported that its Total Revenue rose from over $.09 billion for the 12 months period that ended on May 31, 2022 to over $5.35 billion for the 12 months period that ended on May 31, 2023, and that its Net Income over those respective time periods increased from $200.9 million to over $1 billion.

On April 4, 2024, Lamb Weston reported its financial results for its fiscal third quarter 2024 and disclosed significant problems with its transition to its new Enterprise Resource Planning (ERP) software system. Those problems caused Lamb Weston to lose over $130 million in sales during the third quarter. The unsuccessful ERP transition resulted in Lamb Weston's "reduced visibility into finished goods inventory at [ ] distribution centers," which negatively impacted the Company's ability to fulfill customer orders, resulting in shipment delays and cancelled orders. In total, Lamb Weston's ERP system roll-out negatively impacted the Company's net sales by $135 million, net income by $72 million, and adjusted earnings before interest, taxes, depreciation, and amortization by $95 million. Lamb Weston also cut its sales guidance range for fiscal 2024 by $330 million, at the midpoint. The Company disclosed that it expected sales volumes in its fiscal fourth quarter 2024 to be negatively impacted by some customers that were affected by Lamb Weston's botched ERP transition, as those customers turned to Lamb Weston's competitors to meet their needs

Shares of Lamb Weston Holdings, Inc. (NYSE: LW) declined from $111.88 per share in January 2024 to $77.41 per share on April 08, 2024.

The plaintiff claims that between July 25, 2023 and April 3, 2024, the defendants knew of, or recklessly disregarded, problems associated with the ERP system that would hinder its successful implementation, and that 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 the Company's business and operations. As a result, the Complaint alleges, the statements concerning its business, operations, and prospects, including its financial guidance for fiscal 2024, lacked a reasonable factual basis. In addition, to the extent the Company 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.

Those who purchased shares of Lamb Weston Holdings, Inc. (NYSE: LW) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.