Robbins LLP is Investigating Whether The Simply Good Foods Company Misled Investors Regarding the Successful Integration of OWYN  

Robbins LLP informs investors that a class action was filed on behalf of all purchasers of The Simply Good Foods Company  (NASDAQ: SMPL) common stock between October 24, 2024 and April 8, 2026 (the "Class Period"). Good Foods sells consumer packaged foods and snacking products under its various brands.

Why Was Good Foods Sued?

Plaintiff alleges that on April 29, 2024, Good Foods announced it agreed to acquire OWYN for $280 million in an all-cash transaction (the "Acquisition"). At the time, Good Foods stated that the Acquisition offered several “compelling strategic and financial benefits,” including the diversification of the Company’s portfolio by increasing its “presence within the RTD shake segment.”

The Acquisition was completed on June 13, 2024, and defendants claimed the integration was "progressing as planned." Then, in October 2025, Good Foods' CEO represented that the OWYN integration had been “largely completed” and “gone well.”

The complaint alleges that the integration of OWYN has been a complete failure. Specifically, the complaint alleges that defendants failed to disclose:

(a) that Good Foods had lost key managerial personnel following the Acquisition necessary for the successful integration of the acquired OWYN assets, impairing the Company’s ability to achieve the Acquisition’s purported strategic initiatives and financial and operational targets;

(b) that Good Foods had materially increased its general and administrative spending to compensate for the loss of key managerial personnel, leading to an inefficient and bloated organizational structure and the lack of clear and cohesive strategic priorities for its OWYN segment;

(c) that the addition of a new pea protein supplier for OWYN formulations prior to the Acquisition had created significant product quality issues which had negatively impacted

the taste, texture, and shelf-life of OWYN products, leading to negative product reviews, depressed consumer sales, and the loss of important distributor relationships;

(d) that, in an effort to boost sales in the short-term, Good Foods had offered discounts and engaged in other promotional activities for OWYN products above its historical practices, eroding the Company’s margins but failing to achieve the desired sales turnaround;

(e) that, in order to stem the margin erosion being suffered in its OWYN segment, Good Foods had cut brand support and marketing for OWYN, further depressing product sales; and

(f) as a result of (a)-(e) above, the Acquisition had largely failed to achieve its key strategic goals, the integration of OWYN had run into severe operational and execution problems, and the business and operational results for the Company’s OWYN segment had been materially negatively impacted, undermining the Acquisition’s economic rationale.

Why Did SMPL Stock Drop?

Plaintiff contends that on April 9, 2026, Good Foods announced its second quarter of 2026 earnings results, revealing that consumer consumption had plummeted across all of the Company’s brands. Rather than the double-digit growth previously highlighted, OWYN’s quarterly sales had contracted by nearly 17% year-over-year. Good Foods further revealed a $187 million impairment charge against its OWYN brand intangible assets and slashed its 2026 net sales outlook to a range of negative 7% to negative 10%. On this news, the price of Good Foods common stock declined from $14.41 per share on April 8, 2026 to $10.44 per share on April 10, 2026, a decline of more than 27% over a two-day trading period, on above-average volume.

On July 9, 2026, Good Foods reported the Company’s financial results for its third fiscal quarter ending May 30, 2026. In connection with reporting these results, the Company revealed an additional $13 million impairment of its OWYN assets, bringing cumulative impairments for the brand to $200 million – 70% of the purchase price less than two years after the Acquisition closed. In the related earnings call, defendant Scalzo acknowledged the severity of the Company’s problems following the Acquisition, stating, “[i]mportantly, we remain in the early stages of our turnaround and have significant work ahead.”

The price of Good Foods shares has declined more than 70% from Class Period highs of more than $40 per share to lows of less than $11 per share by Class Period end.

Who May Be Eligible to Participate

The lawsuit seeks to represent investors who purchased or otherwise acquired The Simply Good Foods Company securities during the applicable Class Period. If you purchased The Simply Good Foods Company during this period and suffered investment losses, you may have rights under the federal securities laws. Submit a form for Information.

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