The Class: Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired United Natural Foods, Inc. (NYSE: UNFI) securities between March 10, 2021 and March 7, 2023, for violations of the Securities Exchange Act of 1934. United Natural Foods is a distributor of natural, organic, specialty, produce and conventional grocery and non-food products.
What Now: Similarly situated shareholders may be eligible to participate in the class action against United Natural Foods. Shareholders who want to act as lead plaintiff for the class must file their papers by May 19, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: United Natural Foods, Inc. (UNFI) Made False and Misleading Statements Regarding its Business Prospects
According to the complaint, on March 8, 2023, United Natural Foods announced its second quarter 2023 financial results, revealing a $6 million decline in gross profits, despite a 6% increase in net sales. The Company stated that its profits “were challenged as we did not repeat the significant level of procurement gains from rapidly accelerating inflation and inventory gains, due to supply chain volatility, that we experienced in the second quarter of last year.” On this news, the Company’s stock price fell $11.49, or 28.1%, to close at $29.47 per share on March 8, 2023, injuring investors.
During the class period, defendants failed to disclose to investors: (1) that, despite its cost saving Value Path initiative, United Natural Foods had not invested in improving its data management and related infrastructure; (2) that, as a result, the Company could not respond adequately to cost changes, such as inflationary pressure; (3) that, as a result, the Company could not appreciate the benefits of procurement gains and inventory gains achieved during fiscal 2022; and (4) that, as a result of the foregoing, the Company’s profitability would be materially adversely impacted.
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