SETTLED
THE KRAFT HEINZ CO (KHC) Settlement
FILING DEADLINES:
10/10/2023 ($450,000,000 The Kraft Heinz Company)
CASE NUMBER:
19-cv-01339
CLASS PERIOD:
November 6, 2015 — August 7, 2019
TOTAL SETTLEMENT FUND:
$450,000,000.00
SETTLING DEFENDANTS
The Kraft Heinz Company
ELIGIBLE CLASS
All persons and entities other than Defendants who purchased or otherwise acquired the Kraft Heinz Company common stock or call options on Kraft Heinz common stock, or sold put options on Kraft Heinz common stock, from November 6, 2015 through August 7, 2019.
ELIGIBLE INSTRUMENTS
Kraft Heinz Company common stock or call options on Kraft Heinz common stock, or sold put options on Kraft Heinz common stock.
NOTE: This Kraft Heinz Securities Settlement is an entirely different settlement from the fair fund settlement.
Preliminary Allegations
The complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) Kraft’s internal controls, specifically with respect to its procurement area, were inadequate; (2) Kraft would be forced to write down a significant amount of goodwill and certain intangible assets in its Kraft natural cheese business, its Oscar Mayer cold cuts business, and its Canada retail business due to supply chain issues; (3) Kraft failed to advise investors of the foregoing issues; and (4) as a result, Kraft’s public statements were materially false and misleading at all relevant times.
Case Summary
Class action on behalf of all persons and entities other than Defendants who purchased or otherwise acquired the Kraft Heinz Company common stock or call options on Kraft Heinz common stock, or sold put options on Kraft Heinz common stock, from November 6, 2015 through August 7, 2019, pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
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Case UpdatesNovember 6, 2015 Press Release: Kraft Heinz filed its Form 10-Q for the third quarter of 2015 with the SEC on November 6, 2015, signed by Defendant Hees. In its Form 10-Q, the Company made material misrepresentations concerning the Company’s goodwill and intangible asset impairment analysis and conclusions. Specifically, the Company stated, “we perform our annual impairment testing in the second quarter or when a triggering event occurs” and that “[n]o impairment of goodwill was reported as a result” of the Company’s annual goodwill impairment test. The Company reported $50.6 billion in intangible assets and $46.8 billion in goodwill. January 31, 2018 News: “Kraft Heinz Announces Upcoming Changes to its Board of Directors” The Kraft Heinz Company KHC, announced today that, after years of distinguished service, Mackey McDonald, 71, will retire from the Company’s Board of Directors following the end of his term at the upcoming Kraft Heinz 2018 Annual Meeting of Stockholders. November 1, 2018 News: “Kraft Heinz Reports Third Quarter 2018 Results” The Kraft Heinz Company (NASDAQ: KHC) (“Kraft Heinz” or the “Company”) today reported third quarter 2018 financial results that reflected solid gains from Organic Net Sales growth and lower taxes versus the prior year period that were offset by investments in strategic capabilities, as well as higher overhead and input costs. February 22, 2019 News: “Kraft Heinz shares fall 28 percent after writedown, dividend cut” Kraft Heinz Co shares fell to a record low on Friday a day after the food company disclosed a $15 billion write-down on its marquee brands, raising concern that years of rigorous cost cutting have eroded the value of its Kraft cheeses and Oscar Mayer deli meats. August 8, 2019 News: “Kraft Heinz stock craters to all-time low after company releases delayed earnings report” Shares of Kraft Heinz fall after the packaged food giant said it’s delaying its quarterly filing and discloses write-downs totaling $1.22 billion. The company disclosed earlier this year it had received a subpoena from the Securities and Exchange Commission into its accounting policies and internal controls. |
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Next StepsAll investors who purchased Kraft Heinz common stock (KHC) from November 6, 2015 through August 7, 2019, should contact Battea Class Action Services today. |
BRIEF COMPANY PROFILE
The Kraft Heinz Company manufactures and markets food and beverage products in the United States, Canada, Europe, and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products.
On July 2, 2015, Kraft Foods Group, Inc. completed the Merger with and into a wholly-owned subsidiary of H.J. Heinz Holding Corporation (“Heinz”). At the closing of the 2015 Merger, Heinz was renamed The Kraft Heinz Company and H. J. Heinz Company changed its name to Kraft Heinz Foods Company. While Kraft Heinz was organized as a Delaware corporation in 2013 (as Heinz), both Kraft and Heinz have been pioneers in the food industry for over 100 years.