A securities class action alleges Simply Good Foods switched OWYN to an inferior pea protein supplier, causing taste, texture, and shelf-life failures that were not disclosed to investors until OWYN sales contracted nearly 17% and the brand was written down by $187 million.
NEW YORK, Aug. 19, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in The Simply Good Foods Company (NASDAQ: SMPL) that a class action has been filed on behalf of shareholders who purchased securities between October 24, 2024 and April 8, 2026. Find out if you might qualify for recovery. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
SMPL shares fell from a closing price of $14.41 per share on April 8, 2026 to $10.44 per share on April 10, 2026, a decline of more than 27% or $3.97 per share over a two-day trading period. The Company recorded a $187 million impairment against OWYN brand intangibles in Q2 2026, part of a cumulative $200 million write-down on a brand purchased for $280 million. The lead plaintiff deadline is October 13, 2026.
The Alleged Pea Protein Sourcing Decision
The action contends that a decision to add a new pea protein supplier for OWYN formulations, made before the June 2024 acquisition closed and implemented shortly afterward, produced significant taste, texture, and shelf-life problems as product aged on shelves. As pleaded, those defects generated negative consumer ratings, depressed sales, and the loss of important distributor relationships, none of which was disclosed to investors until October 23, 2025.
Plaintiffs allege that even after the sourcing issue was acknowledged, management characterized it as a limited, temporary matter affecting only a small portion of product, telling investors on October 23, 2025 that "the product issue is largely behind us." The action contends this understated the scope of the damage to the brand.
Alleged Product Quality Impact by the Numbers
- OWYN acquisition price: $280 million (June 2024)
- Original fiscal 2025 OWYN net sales guidance: $135 million to $145 million, a projected 20% to 30% increase
- OWYN quarterly sales in Q2 2026: contracted nearly 17% year over year
- Fiscal 2026 net sales outlook: cut to negative 7% to negative 10%
- Gross margins reported in the middle 30s against a target near 40%
- Cumulative OWYN impairment: $200 million, more than 70% of the purchase price
"The complaint raises serious questions about whether investors received accurate information about product quality problems that were allegedly already affecting OWYN sales and distributor relationships. Sourcing decisions that change how a product tastes and how long it lasts are operational facts, not forward-looking predictions."Â -- Joseph E. Levi, Esq.
Submit your information now or call (212) 363-7500.
WHY LEVI & KORSINSKY — Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Investors who suffered losses have until October 13, 2026 to seek appointment as lead plaintiff.
Frequently Asked Questions About the SMPL Lawsuit
Q: Who is eligible to join the SMPL investor lawsuit? A: Investors who purchased SMPL stock or securities between October 24, 2024 and April 8, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.
Q: What specific misstatements does the SMPL lawsuit allege? A: The complaint alleges The Simply Good Foods Company made materially false or misleading statements regarding the integration and product quality of the OWYN brand during the Class Period. When the Company disclosed a nearly 17% contraction in OWYN sales, a $187 million impairment charge, and a reduced fiscal 2026 outlook, the stock price declined sharply.
Q: What court was the SMPL class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.
Q: What do SMPL investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.
Q: What documents do I need to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.
Q: What if I already sold my SMPL shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.
CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
Ed Korsinsky, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
Tel: (212) 363-7500\
Fax: (212) 363-7171
Attorney Advertising. Prior results do not guarantee similar outcomes.
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SOURCE Levi & Korsinsky, LLP
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