GRABAR LAW OFFICE INVESTIGATES CLAIMS ON BEHALF OF INVESTORS OF UNITED NATURAL FOODS, INC. (NYSE: UNFI)
United Natural Foods, Inc. is a distributor of natural, organic, specialty, produce and conventional grocery and non-food products. The Company has two reportable segments: Wholesale, which includes grocery, fresh, wellness, private brands, eCommerce, and food service; and Retail, which includes 73 retail grocery stores that offer groceries, general merchandise, home, health and beauty care, and pharmacy. The Wholesale segment accounts for more than 95% of United Natural Foods’ net sales.
On December 9, 2020, during the first quarter 2021 earnings call, the United Natural Foods announced its “Value Path” initiative, “a holistic approach to driving more value throughout [the] business, including across key elements of pricing, procurement, operations, and administrative functions.”
An underlying securities fraud class action complaint alleges that United Natural Foods, via certain of its officers and directors, failed to disclose to investors: (1) that, despite its cost saving Value Path initiative, United Natural Foods had not invested in improving its data management and related infrastructure; (2) that, as a result, the Company could not respond adequately to cost changes, such as inflationary pressure; (3) that, as a result, the Company could not appreciate the benefits of procurement gains and inventory gains achieved during fiscal 2022; (4) that, as a result of the foregoing, the Company’s profitability would be materially adversely impacted; and (5) and that as a result of the foregoing, Defendant’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On September 13, 2024, a federal judge determined that the operative complaint “plausibly pleads that the Profit Driver Statements, Profit Sustainability Statements, and Risk Factor Statements were materially misleading to a reasonable investor; thus, the motion to dismiss is denied with respect to those statements.”
If you have held United Natural Foods shares since prior to December 8, 2021, and would like to learn more at no cost to you, please contact Joshua Grabar at [email protected] or Mia Heller at [email protected], or call us at 267-507-6085.