According to the law firm press release, Annie’s, Inc. produces, markets and distributes natural and organic food products, including meals, snacks, dressings, condiments and other products. The Complaint alleges that defendants misrepresented and/or failed to disclose material adverse facts about the Company’s operations and financial performance, including that: the Company’s historical methodology for estimating certain trade allowances did not include all related trade promotion costs; the Company’s controls over accounting for contract manufacturing did not sufficiently evaluate the valuation and accuracy of all contract manufacturing receivables and payables; the Company had a material weakness in its ability to detect misstatements as a result of its insufficient controls; and as a result of its inadequate internal and financial controls, the Company’s financial statements were materially false and misleading at all relevant times.
On June 2, 2014, Annie’s, Inc. disclosed that the Company had identified a material weakness in its internal control over financial reporting that was not effective as of March 31, 2014. According to the Company, the material weakness related to “an insufficient complement of finance and accounting resources…resulting in design deficiencies in certain areas in which our controls were not precise enough to detect misstatements that in the aggregate could be material to the consolidated financial statements.” Then, on June 3, 2014, after the market close, Annie’s announced that its independent registered public accounting firm, PricewaterhouseCoopers LLP, was resigning effective the earlier of August 11, 2014, or the completion of the Company’s filing with the SEC of the Form 10-Q for the period ending June 30, 2014.
On September 22, 2014, the Court issued an Order appointing lead plaintiffs and approving the selection of lead counsel. Lead Plaintiffs filed a consolidated complaint on October 22.
On April 16, 2015, the Court issued an Order granting defendants' motion to dismiss with leave to amend.
Lead Plaintiffs decided to voluntarily dismiss this action on June 15, 2015.