Were difficult since we were not able to recreate the large level of procurement gains that we obtained in the second quarter of the previous year as a result of fast-rising inflation and inventory gains as a result of instability in the supply chain.
The Class
Robbins LLP advises investors that a shareholder has filed a Securities Exchange Act of 1934 class action lawsuit on behalf of all people and entities who purchased or otherwise acquired United Natural Foods, Inc. (NYSE: UNFI) securities between March 10, 2021 and March 7, 2023. United Natural Foods is a wholesaler of natural, organic, specialized, produce, and conventional food and non-food items.
What’s Next
Shareholders in a similar situation may be entitled to join the class action against United Natural Foods. Shareholders who wish to serve as class representative must submit their paperwork by May 19, 2023. A lead plaintiff is a representative person that directs the case on behalf of other class members. You do not need to participate in the lawsuit in order to be eligible for compensation. For further information, go here
United Natural Foods, Inc. (UNFI) Made False and Deceptive Claims Concerning its Commercial Potential.
What is this Case About
According to the lawsuit, United Natural Foods released its financial figures for the second quarter of 2023 on March 8, 2023, demonstrating a $6 million reduction in gross profits despite a 6% increase in net sales. The company noted that its earnings “were hampered.
Because we were unable to recreate the large level of procurement advantages from quickly accelerating inflation and inventory gains owing to supply chain turbulence that we saw in the second quarter of last year.” Investors were harmed when the Company’s stock price decreased $11.49, or 28.1%, to finish at $29.47 per share on March 8, 2023.
During the class period, the defendants failed to disclose to investors: (1) that, despite its cost-saving Value Path initiative, United Natural Foods had not invested in improving its data management and related infrastructure; (2) that, as a result, the Company was unable to respond adequately to cost changes, such as inflationary pressure; and (3) that, as a result, the Company was unable to recognize the benefits of procurement gains and inventory gains achieved during fiscal 2022.