SAN DIEGO -- (Business Wire)
Robbins
Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/boulderbrands/)
today announced that a class action has been commenced in the United
States District Court for the District of Colorado on behalf of
purchasers of Boulder Brands, Inc. (“Boulder”) (NASDAQ:BDBD) common
stock during the period between December 23, 2013 and October 22, 2014
(the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later
than 60 days from today. If you wish to discuss this action or have any
questions concerning this notice or your rights or interests, please
contact plaintiff’s counsel, Darren
Robbins of Robbins Geller at 800-449-4900 or 619-231-1058, or via
e-mail at djr@rgrdlaw.com. If you
are a member of this class, you can view a copy of the complaint as
filed or join this class action online at http://www.rgrdlaw.com/cases/boulderbrands/.
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.
The complaint charges Boulder and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. Boulder is a
company that markets and manufactures a wide array of consumer food
products for sale primarily in the United States, Canada and the United
Kingdom.
The complaint alleges that during the Class Period, defendants issued
materially false and misleading statements and/or failed to disclose
adverse facts concerning the Company’s business and prospects.
Specifically, defendants failed to disclose that the Company was having
problems with its inventory management and the integration of recent
acquisitions, and that the Company’s ongoing mix shift to lower margin
products made its previously announced margin improvements unattainable.
As a result of defendants’ false statements and omissions, Boulder stock
traded at artificially inflated prices during the Class Period, reaching
a high of $17.94 per share on April 2, 2014.
Then, on October 22, 2014, Boulder provided an update on its anticipated
third quarter 2014 financial results and its outlook for the fourth
quarter of 2014, disclosing that during “the third quarter, we faced a
number of headwinds that impacted our financial results.” The Company
further disclosed that the “the mix shift of our fast-growing, lower
margin Natural segment is significantly outpacing our higher margin
Balance segment and is therefore putting increased pressure on our gross
margins.” In addition, the Company revealed it was “expecting lower
shipments due to a normalizing of certain inventories at our largest
customer.” On this news, the price of Boulder stock collapsed 23%,
falling from a closing price of $12.73 per share on October 21, 2014 to
close at $9.62 per share on October 22, 2014, on volume of more than 9
million shares traded. The next day, Boulder’s stock price dropped an
additional 6%, closing on October 23, 2014 at $8.99 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of
Boulder common stock during the Class Period (the “Class”). The
plaintiff is represented by Robbins Geller, which has expertise in
prosecuting investor class actions and extensive experience in actions
involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and
international institutional investors in contingency-based securities
and corporate litigation. The firm has obtained many of the largest
securities class action recoveries in history, including the largest
securities class action judgment. Please visit http://www.rgrdlaw.com
for more information.
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Contacts:
Robbins Geller Rudman & Dowd LLP
Darren
Robbins, 800-449-4900 or 619-231-1058
djr@rgrdlaw.com
Source: Robbins Geller Rudman & Dowd LLP
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