Simply Good Foods Class Action Lawsuit Allegations
The Simply Good Foods class action lawsuit asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Simply Good Foods common stock. The class action is pending in the U.S. District Court for the Southern District of New York. It is captioned Monroe County Employees’ Retirement System v. The Simply Good Foods Company et al., No. 1:26-cv-06971.
If you lost money on your Simply Good Foods investment, you are encouraged to submit your information using the form on this page. You may also email adam@bfalaw.com or call 212.789.3619.
Why is Simply Good Foods Being Sued for Securities Fraud?
Simply Good Foods has been sued for securities fraud following significant stock drops resulting from alleged violations of the federal securities laws. The declines in Simply Good Foods’ stock price caused significant losses to investors.
Simply Good Foods develops and sells consumer packaged health foods and snacking products under brands including Quest, Atkins, and OWYN. In June 2024, Simply Good Foods completed its $280 million acquisition of OWYN, a plant-based ready-to-drink protein shake brand.
According to the complaint, defendants repeatedly represented that OWYN’s integration was proceeding as planned, progressing well, nearly complete, or largely completed, and that Simply Good Foods remained confident in OWYN’s ability to deliver sustained profitable growth.
As alleged, Simply Good Foods failed to disclose that it had lost key managerial personnel following the acquisition, materially increased general and administrative spending, suffered significant OWYN product quality issues tied to a pea protein supplier, relied on discounting and promotional activity above historical practices, cut brand support and marketing for OWYN, and that these issues undermined the acquisition’s strategic rationale.
Why did Simply Good Foods’ Stock Drop?
On October 23, 2025, Simply Good Foods revealed that OWYN sales growth had slowed and that a pea protein raw material sourcing decision had resulted in taste and texture issues as the products aged, leading to negative product ratings and reviews and depressed sales for OWYN.
On this news, Simply Good Foods’ stock dropped $4.33 per share, or about 17.4%, from $24.96 per share on October 22, 2025, to $20.63 per share on October 23, 2025.
Then, on April 9, 2026, Simply Good Foods announced that consumer consumption had fallen across all of the Company’s brands and that the Company recorded a $187 million impairment charge against OWYN brand intangible assets.
On this news, Simply Good Foods’ stock dropped from $14.41 per share on April 8, 2026 to 10.44 per share on April 10, 2026, a decline of more than 27%.
Simply Good Foods ($SMPL) Stock Chart
Image Caption: NASDAQ online chart showing the Simply Good Foods (SMPL) stock drop following the April 2026 announcement.
What is the Simply Good Foods Lead Plaintiff Deadline?
You may ask the Court no later than October 13, 2026, to appoint you as Lead Plaintiff through counsel of your choice.
To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
How Do I Submit My Information?
If you lost money when Simply Good Foods securities dropped in price, you are encouraged to submit your information using the form on this page to speak with an attorney about your rights.
You can also contact:
Adam McCall
adam@bfalaw.com
212.789.3619
All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of the class action lawsuit. The firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS.
BFA attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360, and “SuperLawyers” by Thomson Reuters.
Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.”
BFA’s notable successes include a recovery of over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.
