NEW YORK, Feb. 26, 2019 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Conagra Brands, Inc. ("Conagra" or the "Company") (NYSE: CAG). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether Conagra and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On June 27, 2018, Conagra announced the acquisition of Pinnacle Foods, Inc. ("Pinnacle"), in a cash and stock transaction valued at approximately $10.9 billion. On or about October 9, 2018, in order to partially finance the pending acquisition of Pinnacle, Conagra effectuated a secondary public offering of 16,312,057 shares of common stock, priced at $35.25 per share, raising net proceeds of approximately $612 million. Just weeks after the closing of the merger, on December 20, 2018, Conagra stunned the market by releasing its third quarter 2018 results, as well as an update on the performance of the newly merged company, which revealed that Pinnacle's performance had been much worse than previously represented. In addition, Conagra revealed that Pinnacle's three leading brands had "suffered sales and distribution losses" in 2018 and accounted "for the vast majority of Pinnacle's current challenges."
Following these disclosures, Conagra's stock price fell $8.13 per share over the following three trading sessions, or roughly 30%, to close at $20.96 per share on December 24, 2018.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP