NEW YORK, April 22, 2016 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Freshpet, Inc. (“Freshpet” or the “Company”) (NASDAQ:FRPT) and certain of its officers. The class action, filed in United States District Court, District of New Jersey, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Freshpet securities between April 1, 2015 and November 11, 2015, inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Freshpet securities during the Class Period, you have until June 20, 2016 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Freshpet manufactures, markets, and distributes natural fresh and refrigerated meals and treats for dogs and cats in the United States and Canada. Freshpet, Inc. sells its products under the Freshpet brand, as well as under the Dognation and Dog Joy labels. The company sells its products through various classes of retail, including grocery, mass, club, pet specialty, and natural.
The Complaint alleges that throughout the Class Period, defendants failed to disclose that: (a) one of the Company's material customers, Target Corp., was undergoing a corporate reorganization and, accordingly, was delaying the installation of a significant number of Freshpet Fridges; (b) two of the Company's supermarket customers were experiencing financial hardships such that it was likely that any Freshpet Fridges located in their respective stores would soon have to be removed; and (c) due to the foregoing, the Company was not growing its overall number of installed Freshpet Fridges at the levels communicated to investors and was tracking well below internal forecasts for such placements.
On August 11, 2015, Freshpet announced its financial results for the second quarter of 2015, the period ending June 30, 2015, and revealed that the Company was experiencing weaker gross margins and slowing fridge growth.
As a result, on August 12, 2015, the price of Freshpet common stock declined $0.87 per share, or 6%, to close at $13.73 per share, on heavy trading volume.
On November 11, 2015, Freshpet announced its financial results for the third quarter of 2015, the period ending September 30, 2015. For the quarter, the Company reported net sales of $30.6 million, adjusted EBITDA of $2.3 million, and Freshpet Fridges of 14,670.
In reaction to this announcement, on November 12, 2015, the price of Freshpet common stock fell $2.09 per share, or 25%, to close at $6.28 per share.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, 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.