Lawsuit filed for Investors who lost money with shares of Lifecore Biomedical, Inc. (NASDAQ: LFCR)

An investor, who purchased shares of Lifecore Biomedical, Inc. (NASDAQ: LFCR), filed a lawsuit over alleged violations of Federal Securities Laws by Lifecore Biomedical, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Lifecore Biomedical, Inc. (NASDAQ: LFCR) have certain options and for certain investors are short and strict deadlines running. Deadline: September 27, 2024. NASDAQ: LFCR investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Chaska, MN based Lifecore Biomedical, Inc., together with its subsidiaries, operates as an integrated contract development and manufacturing organization in the United States and internationally.

In September 2022, Lifecore Biomedical, Inc. began reporting various issues concerning the internal controls over its financial reporting. On September 14, 2022, in the first of what would ultimately be a series of 16 such disclosures over approximately an 18-month period, Lifecore filed an Annual Report on Form 10-K with the SEC for the fiscal year ended May 29, 2022 (the "2022 10-K") which revealed, in relevant part, that "due to a material weakness in our internal control over financial reporting [. . .] our disclosure controls and procedures were not effective as of May 29, 2022[,]" and that the Company was restating several previously issued financial statements. Despite the foregoing, Lifecore represented to investors that the Company was undertaking efforts to address the material weaknesses and restate the financial statements in a timely manner. For example, Lifecore stated in the 2022 10-K that the Company was purportedly "evaluating remediation activities related to [its] non-standard transaction processes" including "(i) enhancing and developing a more comprehensive review process and monitoring controls related to non-standard transactions and (ii) continuing to provide training and development to [Lifecore's] accounting team related to non-standard transactions, including discontinued operations and restructuring activity."

Then, on October 7, 2022, Lifecore Biomedical, Inc. filed a Quarterly Report on Form 10-Q with the SEC for the fiscal quarter ended August 28, 2022 (the "Q1 2023 10-Q") which stated that the Company's "disclosure controls and procedures were not effective as of August 28, 2022, due to the material weakness in internal control over financial reporting that was disclosed in the [2022 10-K]."

On January 9, 2023, Lifecore Biomedical, Inc. revealed in a filing with the SEC that the Company was "unable to file, without unreasonable effort and expense, its Quarterly Report on Form 10-Q for the period ended November 27, 2022 (the 'Second Quarter Form 10-Q') in a timely manner" because "[t]he Company experienced an unexpected delay in finalizing the financial statements relating to the assessment of certain asset impairments and subsequent events in the Second Quarter Form 10-Q."

On January 11, 2023, Lifecore Biomedical, Inc. announced receipt of a notification letter from the Listing Qualifications Department of NASDAQ indicating that, "as a result of the Company's delay in filing its Quarterly Report on Form 10-Q for the period ended November 27, 2022 [] with the [SEC], the Company [was] not in compliance with the requirements for continued listing under Nasdaq Listing Rule 5250(c)(1)[.]"

On February 1, 2023, Lifecore Biomedical, Inc. revealed in a filing with the SEC that "the Company's previously issued (i) consolidated financial statements as of and for the year ended May 29, 2022 and (ii) unaudited consolidated financial statements as of and for the three months ended August 28, 2022" should no longer be relied upon. Specifically, Lifecore indicated that "[t]his determination resulted from the identification of errors [. . .] identified by the Company related to certain non-cash impairment charges" related to a particular segment of the Company and that the financial statements for these periods would need to be restated.

On March 16, 2023, Lifecore Biomedical, Inc. filed a Quarterly Report on Form 10-Q with the SEC for the fiscal quarter ended November 27, 2022 (the "Q2 2023 10-Q") which stated, in relevant part, that the Company's "disclosure controls and procedures were not effective as of November 27, 2022, due to the material weaknesses in internal control over financial reporting that were disclosed in [the 2022 10-K]."

On April 10, 2023, Lifecore Biomedical, Inc. revealed in a filing with the SEC that the Company "could not complete the filing of its Quarterly Report on Form 10-Q for the period ended February 26, 2023 (the 'Third Quarter Form 10-Q') in a timely manner due to a delay in obtaining and compiling information required to be included in its Third Quarter Form 10-Q, which delay could not be eliminated by the Company without unreasonable effort and expense."

On June 2, 2023, Lifecore Biomedical, Inc. filed a Quarterly Report on Form 10-Q with the SEC for the fiscal quarter ended February 26, 2023 (the "Q3 2023 10-Q"), which stated, in relevant part, that the Company's "disclosure controls and procedures were not effective as of February 26, 2023, due to the material weaknesses in internal control over financial reporting that were disclosed in [the 2022 10-K]." Nonetheless, Lifecore reiterated in the Q3 2023 10-Q again that the Company was implementing a remediation plan to address the foregoing material weaknesses.

On August 14, 2023, Lifecore Biomedical, Inc. revealed in a filing with the SEC that the Company "could not complete the filing of its Annual Report on Form 10-K for the fiscal year ended May 28, 2023 (the '2023 Form 10-K') in a timely manner due to an unexpected delay in obtaining and compiling information required to be included in the 2023 Form 10- K, which delay could not be eliminated by the Company without unreasonable effort and expense" and that "[t]he Company experienced unexpected delays in compiling and analyzing supporting documentation related to the accounting for certain recent non- routine corporate transactions occurring during the fourth quarter 2023, and thus will require additional time to complete the preparation and review processes in support of the 2023 Form 10-K."

On August 22, 2023, Lifecore Biomedical, Inc. announced that the Company received a notification letter from the Listing Qualifications Department of NASDAQ indicating that, "as a result of the Company's delay in filing its Annual Report on Form 10-K for the period ended May 28, 2023 [] with the [SEC], the Company [was] not in compliance with the requirements for continued listing under Nasdaq Listing Rule 5250(c)(1)[.]"

On October 10, 2023, Lifecore Biomedical, Inc. revealed in a filing with the SEC that the Company could not complete the filing of its Quarterly Report on Form 10-Q for the period ended August 27, 2023 as Lifecore continued to finalize the compiling and analyzing of supporting documentation related to the accounting for certain non-routine corporate transactions occurring during the fourth quarter 2023 and the preparation and review processes in support of the Annual Report on Form 10-K for the fiscal year ended May 28, 2023, "which delay could not be eliminated by the Company without unreasonable effort and expense."

On October 31, 2023, L Lifecore Biomedical, Inc. revealed in a filing with the SEC that the Company's previously issued consolidated financial statements as of and for the fiscal years ended May 29, 2022 and May 30, 2021 and the Company's unaudited consolidated financial statements as of and for the periods ending August 30, 2020, November 29, 2020, February 28, 2020, August 29, 2021, November 28, 2021, February 27, 2022, August 28, 2022, November 27, 2022 and February 26, 2023 should no longer be relied upon. Specifically, Lifecore indicated that "[t]his determination resulted from the Company's identification of errors [. . .] related to certain adjustments [. . .] involving the calculation of capitalized interest, valuation of inventories, and certain adjustments related to previously divested businesses" and that the financial statements for the these periods would need to be restated.

On January 10, 2024, Lifecore Biomedical, Inc. revealed in a filing with the SEC that the Company could not complete the filing of its Quarterly Report on Form 10-Q for the period ended November 26, 2023, as it continued to finalize the restatement of certain previously issued consolidated financial statements "and the preparation and review processes in support of the Annual Report on Form 10-K for the fiscal year ended May 28, 2023 [] and of the Quarterly Report on Form 10-Q for the period ended August 27, 2023 [], which delay could not be eliminated by the Company without unreasonable effort and expense."

On January 12, 2024, Lifecore Biomedical, Inc. announced that the Company received a notification letter from the Listing Qualifications Department of NASDAQ indicating that "as a result of the Company's delay in filing its Quarterly Report on Form 10-Q for the fiscal quarter ended November 29, 2023 [] and its continued delay in filing its Annual Report on Form 10-K for the period ended May 28, 2023 [] and its Quarterly Report on Form 10-Q for the fiscal quarter ended August 27, 2023 [] with the [SEC]" the Company was not in compliance with the requirements for continued listing under Nasdaq Listing Rule 5250(c)(1).

On February 16, 2024, Lifecore Biomedical, Inc. announced that the Company received a Staff Delisting Determination from the Listing Qualifications Department of NASDAQ "notifying the Company that [NASDAQ] has initiated a process which could result in the delisting of the Company's securities from [NASDAQ] as a result of the Company not being in compliance with Nasdaq Listing Rule 5250(c)(1)." Specifically, Lifecore stated that the Staff Determination was issued "because the Company has not filed its Annual Report on Form 10-K for the fiscal year ended May 28, 2023 [] or its Quarterly Reports on Form 10-Q for the quarterly periods ended August 27, 2023 [] and November 29, 2023 [] by the Extension Deadline."

On March 20, 2024, Lifecore Biomedical, Inc. issued its Annual Report on Form 10-K/A for the year ended May 29, 2022, the Company's unaudited consolidated financial statements as of and for the periods ending August 30, 2020, November 29, 2020, February 28, 2021, August 29, 2021, November 28, 2021, February 27, 2022, August 28, 2022, November 27, 2022 and February 26, 2023 included in the Company's Quarterly Reports on Form 10-Q filed with the SEC. Per the Company, the "restatements correct errors involving the calculation of capitalized interest, valuation of inventories, and certain other adjustments related to previously divested businesses reflected in the Prior Financial Statements. In addition, the Company has adjusted certain other items that were previously identified and concluded as immaterial, individually and in the aggregate, to the Prior Financial Statements."

Shares of Lifecore Biomedical, Inc. (NASDAQ: LFCR) declined from $11.46 per share on August 09, 2023, to as low as $4.50 per share on March 20, 2024.

On April 8, 2024, Lifecore Biomedical, Inc. revealed in a filing with the SEC that, as a result of the requirement to restate the Prior Financial Statements, it "could not complete the filing of its Quarterly Report on Form 10-Q for the period ended February 25, 2024[,]" and on April 19, 2024, Lifecore Biomedical, Inc. issued a press release announcing that the Company had received a notice from NASDAQ stating that "the Nasdaq Hearings Panel would consider the delinquency in the filing of the Q3 Form 10-Q in rendering its determination regarding the Company's continued listing on Nasdaq Global Select Market."

The plaintiff claims that between October 7, 2020, and March 19, 2024, the Defendants made false and/or misleading statements and/or failed to disclose tha) Lifecore maintained deficient internal controls over financial reporting, that as a result, the Company issued several financial statements that were inaccurate and would need to be restated, that Lifecore's purported remediation efforts with respect to the foregoing deficiencies were ineffective, that all of the foregoing impaired Lifecore's ability to timely file periodic reports with the SEC in compliance with NASDAQ listing requirements, that accordingly, the Company's financial position and/or prospects were materially overstated, and that as a result, the Company's public statements were materially false and misleading at all relevant times.

Those who purchased shares of Lifecore Biomedical, Inc. (NASDAQ: LFCR) 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.