NEW YORK, July 30, 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 Minnesota on behalf of all persons or entities who purchased or otherwise acquired Lifecore Biomedical, Inc. (“Lifecore” or the “Company”) (NASDAQ: LFCR) securities between October 7, 2020 and March 19, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint in the lawsuit alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that the Defendants failed to disclose to investors that: (i) Lifecore maintained deficient internal controls over financial reporting; (ii) as a result, the Company issued several financial statements that were inaccurate and would need to be restated; (iii) Lifecore’s purported remediation efforts with respect to the foregoing deficiencies were ineffective; (iv) all of the foregoing interfered with Lifecore’s ability to timely file periodic reports with the SEC in compliance with NASDAQ listing requirements; (v) accordingly, the Company’s financial position and/or prospects were materially overstated; and (vi) as a result, the Company’s public statements were materially false and misleading at all relevant times.
The Complaint further alleges that the truth fully emerged on March 20, 2024, when Lifecore filed its 2023 10-K stating, in relevant part, that: “Management assessed the effectiveness of our internal control over financial reporting as of May 28, 2023. In making this assessment, which was conducted under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control – Integrated Framework (2013). As part of our annual assessment, management has concluded that we did not design and operate effective internal controls.” The Complaint also alleges that the Company has identified deficiencies in the internal control over financial reporting that aggregated to material weaknesses in the following components of the COSO framework: control environment, risk assessment, information and communication, and monitoring.
The Complaint alleges that on this news, Lifecore’s stock price fell $2.18 per share, or 30.32%, to close at $5.01 per share on March 20, 2024.
Investors who purchased or otherwise acquired shares of Lifecore should contact the Firm prior to the September 27, 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.
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