NEW YORK, Sept. 28, 2018 — Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Campbell Soup Company (“Campbell” or the “Company”) (NYSE: CPB) in the United States District Court for the District of New Jersey on behalf of a class consisting of investors who purchased or otherwise acquired Campbell securities between August 31, 2017, and May 17, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.
The Complaint alleges that: (1) Defendants failed to disclose known trends that were negatively impacting the profitability of the Campbell Fresh division; and (2) as a result of the foregoing, Defendants’ positive statements about Campbell’s and the Campbell Fresh division’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
On May 18, 2018, Campbell announced disappointing financial results for the third straight quarter, including a $19 million loss for the Campbell Fresh division in the third quarter fiscal 2018, forcing the company to take a $619 million pre-tax non-cash impairment charge for the division and to further revise its fiscal year 2018 earnings guidance. Campbell simultaneously announced that Denise Morrison was stepping down immediately as Chief Executive Officer of the Company. Following this news, the price of Campbell common stock fell over 12%, from a close of $39.22 per share on May 17, 2018, to close at $34.37 per share on May 18, 2018.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the November 27, 2018 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
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