SAN FRANCISCO, May 13, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, alerts Inventure Foods, Inc. (NASDAQ:SNAK) investors to the newly filed securities class action lawsuit and its ongoing investigation.
If you suffered significant losses because of your purchases of SNAK or have information that will help our investigation contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation by calling 510-725-3000, emailing SNAK@hbsslaw.com or visiting https://www.hbsslaw.com/cases/SNAK. The lawsuit was originally filed in the Superior Court of the State of Arizona. It is now pending in the U.S. District Court for the District of Arizona.
The current complaint is limited to investors who purchased SNAK common stock in, or traceable to, the September 17, 2014 stock offering. In addition, Hagens Berman is investigating whether there are other violations of the Federal securities laws prior to April 24, 2015.
The current litigation concerns misrepresentations about Inventure’s Jefferson, Georgia food packaging facility, its need for capital improvements, and its need for corrective actions necessary to guard against unsanitary conditions and comply with Federal law.
The Georgia Department of Agriculture Food Safety Division inspected the Jefferson facility on October 22, 2014, identifying unsafe and unsanitary conditions that “may cause contamination of food being processed[.]”
Inventure provided a plan to the agency on November 17, 2014 promising to ensure the bag storage room was thoroughly clean and eliminate standing water. But, in a complaint submitted the U.S. Food and Drug Administration on March 2, 2015, the complainant reported concerns that vegetables went through mold contaminated machinery and bacterial growth resulted from standing water.
On April 23, 2015, Inventure announced a recall of certain food products because its Jefferson facility tested positive for Listeria. On this news the price of Inventure’s stock fell nearly 19% to close at $9.40 per share that day.
“Inventure knew no later than October 2014 that its Jefferson facility had huge problems,” said Hagens Berman partner Reed Kathrein. “Its April 2015 disclosures demonstrate it did not remediate them, and as a result Inventure investors suffered enormous losses.”
Whistleblowers: Persons with non-public information regarding Inventure should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email SNAK@hbsslaw.com.
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