Settlement of Gary Curran v. Freshpet, Inc., et al.,
Case No. 2:16-cv-02263-MCA-LDW
The parties have reached a settlement of this litigation, pending in the United States District Court for the District of New Jersey. The settlement provides for the payment of $10,100,000 for the benefit of eligible Settlement Class Members. Lead Plaintiff Alaska Electrical Pension Fund alleged violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and violations of §§11, 12(a)(2), and 15 of the Securities Act of 1933. Freshpet, Inc. (“Freshpet”) is a manufacturer of pet food that sells through a network of Company-owned and branded refrigerators, known as “Freshpet Fridges,” located in grocery stores and other retailers. Freshpet went public in November 2014.
On August 11, 2015, Freshpet revealed that production inefficiencies would lower its gross profit margin gains throughout the rest of 2015 to below prior forecast, and that sluggish execution by customers pointed to the lower end of its forecasted Fridge-growth range. This partial disclosure resulted in a 6% decline in Freshpet’s stock price on August 12, 2015. Then, at the end of the Class Period (on November 11, 2015), the Company announced disastrous financial results for the third quarter of 2015, reporting several adverse developments. These disclosures led to a 25% stock price decline on November 12, 2015.
The Settlement Class consists of all Persons who purchased or otherwise acquired the common stock of Freshpet between April 1, 2015 and November 11, 2015, inclusive (the “Settlement Class Period”), and were allegedly damaged thereby. Excluded from the Settlement Class are: (i) Freshpet; (ii) the Individual Defendants; (iii) members of the families of each Individual Defendant; (iv) any entity in which any Defendant has a controlling interest; (v) the officers and directors of Freshpet during the Settlement Class Period; and (vi) the legal representatives, heirs, successors or assigns of any such excluded party. Also excluded from the Settlement Class is any Settlement Class Member that validly and timely requests exclusion in accordance with the requirements set by the Court.
The settlement was approved by the Court on March 11, 2020.
If you have any questions about the settlement or the litigation, please contact Rick Nelson at 1-800-449-4900.