Robbins LLP is Investigating Allegations that Lifecore Biomedical, Inc (LFCR) Misled Investors Regarding its Internal Controls Over Financial Reporting

Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Lifecore Biomedical, Inc. (NASDAQ: LFCR) securities between October 7, 2020 and March 19, 2024. Lifecore operates as an integrated contract development and manufacturing organization in the U.S. and internationally.  The Company purportedly designs, develops, manufactures, and sells differentiated products for biomaterials markets, and license technology applications to partners. 

The Allegations

According to the complaint, during the class period, defendants failed to disclose that: (i) Lifecore maintained deficient internal controls over financial reporting; (ii) as a result, the Company issued several financial statements that were inaccurate and would need to be restated; (iii) Lifecore’s purported remediation efforts with respect to the foregoing deficiencies were ineffective; (iv) all of the foregoing impaired Lifecore’s ability to timely file periodic reports with the SEC in compliance with NASDAQ listing requirements; and (v) accordingly, the Company’s financial position and/or prospects were materially overstated.

Plaintiff alleges that beginning on September 14, 2022, Lifecore reported the first of 16 disclosures over an 18-month period, reporting various issues concerning the internal controls over its financial reporting. Lifecore made its last disclosure on March 20, 2024, announcing the Company’s unaudited consolidated financial statements as of and for the periods ending August 30, 2020, November 29, 2020, February 28, 2021, August 29, 2021, November 28, 2021, February 27, 2022, August 28, 2022, November 27, 2022 and February 26, 2023 (collectively, the “Prior Financial Statements”), should no longer be relied upon and would be restated due to errors in the Prior Financial Statements related to adjustments involving the calculation of capitalized interest, valuation of inventories, and certain other adjustments related to previously divested businesses reflected in the Prior Financial Statements.  In addition, the Company adjusted certain other items that were previously identified in the Prior Financial Statements and concluded as immaterial, individually and in the aggregate, to the Prior Financial Statements. On this news, Lifecore’s stock price fell $2.18 per share, or 30.32%, to close at $5.01 per share on March 20, 2024.

What Now: You may be eligible to participate in the class action against Lifecore Biomedical, Inc. Shareholders who want to serve as lead plaintiff for the class must file their papers with the court by September 27, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.