Bragar Eagel & Squire, P.C. announces that a class action lawsuit has
been filed in the United States District Court for the District of New
Jersey on behalf of all persons or entities who acquired Freshpet, Inc.
(NASDAQ:FRPT) securities between April 1, 2015 and November 11, 2015
(the “Class Period”).
Freshpet manufactures and markets natural fresh foods, refrigerated
meals, and treats for dogs and cats in the United States and Canada.
Freshpet’s products are sold to consumers through a network of
company-owned branded refrigerators, known as Freshpet Fridges, which
are located in grocery stores and other retail outlets.
The lawsuit alleges that: (a) one of the company’s material customers,
Target Corp., was undergoing a corporate reorganization and,
accordingly, was delaying the installation of a significant number of
Freshpet Fridges; (b) two of the company’s supermarket customers were
experiencing financial hardships such that it was likely that any
Freshpet Fridges located in their respective stores would soon have to
be removed; and (c) due to the foregoing, the company was not growing
its overall number of installed Freshpet Fridges at the levels
communicated to investors and was tracking well below internal forecasts
for such placements.
On August 11, 2015 Freshpet announced its financial results for the
second quarter of 2015, the period ending June 30, 2015, and revealed
that the company was experiencing weaker gross margins and slowing
fridge growth. As a result, on August 12, 2015, the price of Freshpet
common stock declined $0.87 per share, or 6%, to close at $13.73 per
share, on heavy trading volume.
Then, on November 11, 2015, Freshpet announced its financial results for
the third quarter of 2015, the period ending September 30, 2015. For the
quarter, the company reported net sales of $30.6 million, adjusted
EBITDA of $2.3 million, and Freshpet Fridges of 14,670. In reaction to
this announcement, on November 12, 2015, the price of Freshpet common
stock fell $2.09 per share, or 25%, to close at $6.28 per share.
If you acquired Freshpet securities during the Class Period, have
information or would like to learn more about these claims, or have any
questions concerning this announcement or your rights or interests with
respect to these matters please contact J. Brandon Walker, Esq. by email
at investigations@bespc.com,
or telephone at (212) 355-4648, or by filling
out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating
in commercial and securities litigation. For additional information,
please go to www.bespc.com.
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