SAN FRANCISCO, March 01, 2019 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP alerts investors in Kraft Heinz Company (NASDAQ: KHC) to the April 25, 2019 Lead Plaintiff deadline in the securities class action pending in the United States District Court for the Northern District of Illinois. If you purchased or otherwise acquired Kraft Heinz securities between May 4, 2017 and February 21, 2019 (the “class period”) and suffered losses contact Hagens Berman Sobol Shapiro LLP. For more information visit:
https://www.hbsslaw.com/cases/KHC
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing
According to the complaint, during the class period Defendants misled investors about Kraft’s internal controls over financial reporting and its carrying values of goodwill and certain intangible assets.
On February 21, 2019, Defendants announced Kraft’s carrying values of certain goodwill and intangible assets were well below their carrying amounts. More specifically Kraft recorded impairment charges of $15.4 billion to lower the carrying amount of (a) goodwill, primarily in the U.S. Refrigerated and Canada Retail reporting units, and (b) intangible assets, primarily the Kraft and Oscar Mayer trademarks.
In addition, Defendants announced Kraft received a subpoena in October 2018 from the SEC associated with “an investigation into the Company’s procurement area, more specifically the Company’s accounting policies, procedures, and internal controls related to its procurement function, including, but not limited to, agreements, side agreements, and changes or modifications to its agreements with its vendors.”
This news drove the price of Kraft shares down $13.23, or down about 27.5%, to close at $34.95 on February 22, 2019.
“We’re focused on investors’ losses, the extent to which Defendants’ statements about impairment analysis and asset values may have misled investors, and possibly improper use of side agreements,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding Kraft Heinz should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email KHC@hbsslaw.com.
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Contact:
Reed Kathrein, 510-725-3000