SETTLED
In the Matter of The Kraft Heinz Co. and Eduardo Pelleissone
FILING DEADLINES:
08/31/2023 ($62,314,211 The Kraft Heinz Co.)
CASE NUMBER:
3-20523
CLASS PERIOD:
February 26, 2016 — February 21, 2019
TOTAL SETTLEMENT FUND:
$62,314,211.00
SETTLING DEFENDANTS
The Kraft Heinz Co.
ELIGIBLE CLASS
You may be eligible for compensation from the Kraft Heinz Fair Fund if you purchased or acquired Kraft Heinz Common Stock during the period from February 26, 2016 until the market close on February 21, 2019 (the “Relevant Period”).
ELIGIBLE INSTRUMENTS
Kraft Heinz (KHC) common stock is the only security eligible for recovery under the terms of the Distribution Plan. CUSIP: 500754106.
NOTE: This Kraft Heinz Fair Fund Settlement is an entirely different settlement from the securities class action settlement.
Preliminary Allegations
In the order, the Commission found that from the last quarter of 2015 to the end of 2018, KHC engaged in various types of accounting misconduct, including recognizing unearned discounts from suppliers and maintaining false and misleading supplier contracts, which improperly reduced the company’s cost of goods sold and allegedly achieved “cost savings.” KHC, in turn, touted these purported savings to the market, which were widely covered by financial analysts. The accounting improprieties resulted in KHC reporting inflated adjusted “EBITDA,” a key earnings performance metric for investors. KHC failed to design and maintain effective internal accounting controls for its procurement division. As a result, finance and gatekeeping personnel repeatedly overlooked indications that expenses were being improperly accounted for.
Case Summary
On September 3, 2021, the Securities and Exchange Commission issued an order instituting and simultaneously settling cease-and-desist proceedings against the respondents. Investors will be compensated for their losses on shares of KHC common stock that were purchased or acquired between February 26, 2016 and February 21, 2019.
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Case UpdatesFebruary 21, 2019 News: “Kraft Heinz Stock Plunges as Tastes Change and S.E.C. Investigation Begins” Kraft Heinz, the food giant whose products include Jell-O and Oscar Mayer meats, on Thursday released a surprising batch of bad news that included a multibillion dollar write-down signaling a plunge in the value of some of its most famous brands. In addition to the $15.4 billion write-down, Kraft Heinz said that last year it had received a subpoena from the Securities and Exchange Commission related to an investigation into the company’s accounting and controls. It also reported disappointing fourth quarter earnings that led some analysts to ask whether the company’s stringent controls on costs might be backfiring. |
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Next StepsAll investors who purchased Kraft Heinz common stock (KHC) from February 26, 2016 through February 21, 2019, should contact Battea Class Action Services today. |
BRIEF COMPANY PROFILE
The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in the United States, Canada, the United Kingdom, and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products. The company also offers dressings, healthy snacks, and other categories; and spices and other seasonings. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative and independent grocery accounts, convenience stores, drug stores, value stores, bakeries, pharmacies, mass merchants, club stores, and foodservice distributors and institutions, including hotels, restaurants, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is headquartered in Pittsburgh, Pennsylvania.