New York, New York--(Newsfile Corp. - March 24, 2023) - Scott+Scott Attorneys at Law LLP ("Scott+Scott"), an international shareholder and consumer rights litigation firm, is reminding investors that the deadline to move for lead plaintiff in a securities class action lawsuit against United Natural Foods Inc. (NYSE: UNFI) ("United Natural Foods" or the "Company") and certain other defendants is May 19, 2023. If you purchased United Natural Foods common stock between March 10, 2021 and March 7, 2023 (the "Class Period"), you are encouraged to contact Scott+Scott attorney Jonathan Zimmerman by phone at (888) 398-9312, or by sending an email to [email protected].
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United Natural Foods, Inc. is a distributor of natural, organic, specialty, produce and conventional grocery and non-food products.
According to the complaint filed in the Southern District of New York, captioned Sills v. United Natural Foods, Inc., et al., Case No. 1:23-cv-02364, during the Class Period, United Natural Foods and certain members of its executive management team (collectively "Defendants") made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects, in violation of the Securities Exchange Act of 1934. Specifically, according to the complaint, Defendants failed to disclose: (1) that, despite its cost saving Value Path initiative, United Natural Foods had not invested in improving its data management and related infrastructure; (2) that, as a result, the Company could not respond adequately to cost changes, such as inflationary pressure; (3) that, as a result, the Company could not appreciate the benefits of procurement gains and inventory gains achieved during fiscal 2022; and (4) that, as a result of the foregoing, the Company's profitability would be materially adversely impacted.
On March 8, 2023, the truth about United Natural Foods' business and financial condition reached the market. On that day, United Natural Foods announced its second quarter 2023 financial results, revealing a $6 million decline in gross profit, despite a 6% increase in net sales. The Company stated that its profits "were challenged as we did not repeat the significant level of procurement gains from rapidly accelerating inflation and inventory gains, due to supply chain volatility, that we experienced in the second quarter of last year." As a result, United Natural Foods reduced its profitability outlook for fiscal 2023.
On this news, the Company's stock price fell $11.49, or 28.1%, to close at $29.47 per share on March 8, 2023, thereby injuring investors.
Lead Plaintiff Deadline
The Lead Plaintiff deadline in this action is May 19, 2023. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.
What You Can Do
If you purchased United Natural Foods common stock during the Class Period, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Jonathan Zimmerman by phone at (888) 398-9312, or by sending an email to [email protected].
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, Virginia, California, and Ohio.
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CONTACT:
Scott+Scott Attorneys at Law LLP
Jonathan Zimmerman
230 Park Avenue, 17th Floor, New York, NY 10169-1820
(888) 398-9312
[email protected]
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