NEW YORK, Nov. 17, 2016 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Treehouse Foods, Inc. (“Treehouse” or the “Company”) (NYSE:THS) of the January 17, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of all those who purchased Treehouse securities between February 1, 2016, and November 2, 2016 (the “Class Period”). The case, Tarara v. Treehouse Foods, Inc. et al, No. 1:16-cv-10632 was filed on November 15, 2016, and has been assigned to Judge Samuel Der-Yeghiayan.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Treehouse’s private label business was underperforming; (2) Treehouse’s acquisition strategy was underperforming; (3) the Company overstated its full-year 2016 guidance; and (4) as a result, the Company’s statements about its business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
Specifically, on November 3, 2016, the Company lowered its full-year adjusted earnings per share forecast due to underperformance of the Private Brands acquisition and over softness in the private label manufacturing business. In addition, Treehouse announced the closure of a plant and reported job cuts at one of its facilities. Lastly, Treehouse announced the resignation of its President, Chris Sliva, who had been President for less than six months, and the appointment of a new Chief Financial Officer.
On this news, Treehouse’s share price fell from $86.59 per share on November 2, 2016 to a closing price of $69.72 on November 3, 2016—a $16.87 or a 19.48% drop.
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Take Action
If you invested in Treehouse common stock or options between February 1, 2016, and November 2, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/THS. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Treehouse’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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