Beyond Meat Shareholders File Legal Case Over Disclosure Failings

Credit: Nadya Kubik/Shutterstock.com

Beyond Meat shareholders are taking ineligible action against nan alt-protein business, claiming it “failed to disclose worldly adverse facts”.

Represented by Holzer & Holzer, nan shareholders’ main gripe appears to revolve astir a $77.4m impairment complaint that Nasdaq-listed Beyond Meat eventually revealed successful November.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to scope engaged professionals crossed 36 starring media platforms.

Find retired much

The loss-making institution had issued a warning successful October of a pending “material” impairment complaint and past later successful nan period delayed its third-quarter results position arsenic nan group continued to measure and “quantify” nan size of nan impairment.

Between those 2 announcements, Beyond Meat’s shares extended losses for 2025 from astir 42% to 63%, contempt a little short-covering rally. Earlier successful October, nan banal value had entered penny banal territory beneath $1.00.

While nan shares were hammered passim past twelvemonth by a bid of adverse soul events, including an exit from China and a maturity-extending debt swap, Holzer & Holzer specified a timeframe wherever shareholders were supposedly hurt.

“If you purchased Beyond Meat shares betwixt February 27, 2025, and November 11, 2025, and knowledgeable a important nonaccomplishment connected that investment, you are encouraged to talk your ineligible rights” pinch nan rule firm, nan litigation typical said successful a connection yesterday (26 January).

The connection added: “The suit alleges that defendants issued mendacious and misleading statements and/or grounded to disclose worldly adverse facts regarding Beyond Meat’s business, operations, and prospects.”

It elaborate those facts: “The book worth of definite of Beyond Meat’s long-lived assets exceeded their adjacent value, making it highly apt that nan institution would beryllium required to grounds a material, non-cash impairment charge.”

And: “The foregoing was apt to impair Beyond Meat’s expertise to timely record its periodic filings pinch nan SEC [The US Securities and Exchange Commission].”

Beyond Meat had not responded to Just Food’s petition for remark connected nan ineligible action and claims astatine nan clip of writing.

On nan timeline, Beyond Meat disclosed nan $77.4m impairment connected 10 November, noting nan charges were related to immoderate “long-lived assets”.

Other cited factors included nan “suspension and important cessation” of Beyond Meat’s operations successful China – revealed successful February – “certain non-routine SG&A expenses”, and “incremental arbitration-related ineligible expenses”.

The first impairment informing had travel connected 24 October successful a filing pinch nan SEC.

“The company’s recoverability test, conducted successful accordance pinch ASC 360, preliminarily indicated that nan carrying magnitude of definite of its long-lived assets was not recoverable from nan projected undiscounted early rate flows of nan applicable plus group,” Beyond Meat explained astatine nan time.

Then early successful November – earlier nan last impairment appraisal – nan third-quarter results were delayed, followed later successful nan period by Beyond Meat revealing plans to turnaround nan business done “strategic initiatives” and an endeavour to boost gross profit margins.

What nan Holzer & Holzer connection did not talk is that Beyond Meat has not turned a profit since it went nationalist connected nan Nasdaq speech successful 2019. Nor nan truth its income and volumes person been successful dependable diminution crossed nan company’s cardinal markets successful nan US and Europe amid a wide nonaccomplishment successful appetite for plant-based meats.

Ahead of nan last results for 2025 scheduled for 25 February, Beyond Meat took nan different measurement of entering nan macromolecule drinks category earlier this month. The shares person started disconnected nan caller twelvemonth successful nan reddish – down 7.7% truthful acold astatine $0.88. They person mislaid 78% successful nan past 12 months.