Boulder Brands, Inc
Robbins Arroyo LLP: Boulder Brands, Inc. (BDBD) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that an investor of Boulder Brands, Inc. (NASDAQGS: BDBD) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of Colorado. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between December 23, 2013 and October 22, 2014. Boulder Brands provides health and wellness solutions in the United States, Canada, and United Kingdom.
Boulder Misrepresents Its Business Practices
The complaint alleges that Boulder concealed that the company was experiencing inventory management and integration issues with its EVOL and Udi’s brands. Specifically, Boulder experienced increased execution complexity caused by the expansion of brands and product portfolio creating significant inventory and supply chain problems; the company’s Smart Balance products were decelerating significantly, creating margin pressure; and the company was experiencing service issues and inventory control problems with its largest and other customers. As a result, the company’s previously announced margin improvements were unattainable.
On October 22, 2014, Boulder issued a press release providing an update on its anticipated financial results for the third quarter ended September 30, 2014, and an outlook for the fourth quarter 2014. The press release revealed that the company was taking a significant impairment charge, that earnings per share would fall significantly short of the guidance repeatedly reaffirmed during the class period, and that margins would not reach the levels consistently touted by the company. On this news, shares of Boulder fell over $3.11, or 24%, to close at $9.62 per share.
Boulder Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.