Treehouse Foods, Inc.
Robbins Arroyo LLP: TreeHouse Foods, Inc. (THS) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against TreeHouse Foods, Inc. (NYSE: THS) in the U.S. District Court for the Northern District of Illinois. The complaint is brought on behalf of all purchasers of TreeHouse securities between February 1, 2016 and November 2, 2016, for alleged violations of the Securities Exchange Act of 1934 by TreeHouse’s officers and directors. TreeHouse operates as a food and beverage manufacturer in the United States and Canada.
TreeHouse Accused of Misleading Investors About Its Acquisition Strategy
According to the complaint, on February 1, 2016, TreeHouse announced that it completed the acquisition of ConAgra Foods, Inc.’s private brands operations (“Private Brands”). TreeHouse elaborated, “We are pleased to have closed the acquisition, and will continue to focus on driving shareholder value and offering our customers value without compromise through economies of scale, quality products and superior customer service.” TreeHouse subsequently touted to investors the tremendous growth available for private label manufacturing in the United States and reported an optimistic outlook for 2016. However, the complaint alleges that TreeHouse officials failed to disclose that: (1) the company’s private label business was underperforming; (2) the company’s acquisition strategy was underperforming; and (3) that the company had overstated its full-year 2016 guidance.
On November 3, 2016, TreeHouse lowered its full year adjusted earnings per share forecast from $3.00-$3.10 to $2.80-$2.85 due to lower than expected third quarter sales from the Private Brands business and over softness in the private label manufacturing business. TreeHouse also announced the closure of a plant in Delta, British Columbia, and reported job cuts at its facility in Battle Creek, Michigan. In addition, the company announced the resignation of its newly-appointed President who had been President for less than six months, and the appointment of a new Chief Financial Officer. On this news, the company’s shares fell $16.87 per share, or nearly 20%, to close at $69.72 per share on November 3, 2016.
TreeHouse 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.