Robbins LLP Announces that Flowers Foods, Inc. (FLO) Securities Class Action Survives Motion to Dismiss
Robbins LLP is investigating whether certain officers and directors of Flowers Foods, Inc. (NYSE: FLO) breached their fiduciary duties to shareholders. Flowers Foods produces and markets bakery products in the United States.
Investors filed a class action complaint against Flowers Foods for alleged violations of the Securities Exchange Act of 1934 between February 7, 2013 and August 10, 2016. The complaint alleges that Flowers Foods’ business model, which relies on the misclassification of distributors as independent contractors, exposed the company to existential risk and made the company’s statements about its business, operations, and prospects false and misleading. Flowers revealed in August 2016 that the U.S. Department of Labor (“DOL”) notified the company that it was scheduled for a compliance review under the Fair Labor Standards Act (“FLSA”). If the DOL finds Flowers in violation of the FLSA, Flowers could reportedly be liable for up to $1 billion in back wages, penalties, fines, and health care. On March 23, 2018, the Honorable W. Louis Sands of the U.S. District Court for the Middle District of Georgia, Valdosta Division denied in part Flowers Foods’ motion to dismiss, paving the way for litigation to proceed.
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