Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Southern District of New York on behalf of shareholders of Simply Good Foods Company who purchased shares between October 24, 2024 and April 8, 2026.
Simply Good and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On October 23, 2025, the Company announced its Q4 and YE August 30, 2025 financial results, disclosing that its OWYN (Only What You Need, Inc.) segment, acquired in 2024 for $280 million, had suffered a slowdown in sales growth due to a previously undisclosed product quality issue, specifically, that “a raw material sourcing decision for pea protein,” which predated the close of the OWYN acquisition but was implemented shortly thereafter, had “resulted in taste and texture issues” as the products aged, leading to negative product ratings and reviews and depressed sales for OWYN. The Company also disclosed disappointing 2026 net sales guidance in the range of negative 2% to positive 2%, a decline in the rate of growth of at least 75% from the 9% net sales growth it had reported for fiscal 2025. On this news, the price of Simply Good shares fell more than 17%.
Then, on April 9, 2026, the Company announced its Q2 2026 earnings results, disclosing that OWYN’s quarterly sales had contracted by nearly 17% year-over-year, as well as a $187 million impairment charge against its OWYN brand intangible assets and reduction of 2026 net sales outlook to a range of negative 7% to negative 10%. On this news, the price of Simply Good shares fell more than 27% over a two-day trading period.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until October 13, 2026 to request that the court appoint them lead plaintiff.