According to the law firm press release, Boulder is a company that markets and manufactures a wide array of consumer food products for sale primarily in the United States, Canada and the United Kingdom.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements and/or failed to disclose adverse facts concerning the Company’s business and prospects. Specifically, defendants failed to disclose that the Company was having problems with its inventory management and the integration of recent acquisitions, and that the Company’s ongoing mix shift to lower margin products made its previously announced margin improvements unattainable. As a result of defendants’ false statements and omissions, Boulder stock traded at artificially inflated prices during the Class Period, reaching a high of $17.94 per share on April 2, 2014.
Then, on October 22, 2014, Boulder provided an update on its anticipated third quarter 2014 financial results and its outlook for the fourth quarter of 2014, disclosing that during “the third quarter, we faced a number of headwinds that impacted our financial results.” The Company further disclosed that the “the mix shift of our fast-growing, lower margin Natural segment is significantly outpacing our higher margin Balance segment and is therefore putting increased pressure on our gross margins.” In addition, the Company revealed it was “expecting lower shipments due to a normalizing of certain inventories at our largest customer.” On this news, the price of Boulder stock collapsed 23%, falling from a closing price of $12.73 per share on October 21, 2014 to close at $9.62 per share on October 22, 2014, on volume of more than 9 million shares traded. The next day, Boulder’s stock price dropped an additional 6%, closing on October 23, 2014 at $8.99 per share.
On March 2, 2016, the Court issued an Order appointing lead plaintiff and approving lead counsel. Lead Plaintiff filed a consolidated complaint on April 1.
On March 28, 2017, the Court issued an Order granting Defendants' Motion to Dismiss. This case was ordered closed.