Robbins Arroyo LLP: Flowers Foods, Inc. (FLO) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Flowers Foods, Inc. (NYSE: FLO) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of Flowers Foods securities between February 7, 2013 and August 10, 2016, for alleged violations of the Securities Exchange Act of 1934 by Flowers Foods’ officers and directors. Flowers Foods produces and markets bakery products in the United States.
Flowers Foods Accused of Violating Labor Laws
According to the complaint, throughout the class period, Flowers Foods issued several press releases and submitted multiple filings with the U.S. Securities and Exchange Commission (“SEC”) touting positive financial results. The company elaborated, “We remain confident in our ability to execute upon our growth strategy and continue to create value for our shareholders.” However, the complaint alleges that Flowers Foods officials failed to disclose that: (1) the company was improperly classifying employees as independent contractors; (2) that the misclassification exposed the company to legal liability and/or negative regulatory action; and (3) that proper classification would have a negative impact on the company’s operations.
On August 10, 2016, Flowers Foods disclosed in a Current Report filed with the SEC that the U.S. Department of Labor notified Flowers Foods that it was scheduled for a compliance review under the Fair Labor Standards Act, and that the company could not comment further. After the market closed on August 10, 2016, the company issued a press release announcing disappointing financial results. Flowers Foods noted revenue of only $935 million—below the Wall Street projection of $949 million—and disclosed that it was lowering its 2016 guidance due to soft consumer demand in the bakery category and heightened promotional activity in the industry. On this news, Flowers Foods stock fell $1.20 per share, or 7.4%, to close at $14.95 per share on August 11, 2016.
Flowers Foods 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.
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