Recent Security Class Actions

According to the Complaint, Lamb Weston Holdings, Inc. is a food processing company and one of the world's largest producers of frozen potato products. In July 2023, Lamb Weston announced that it had completed the design phase of its new ERP software system that would manage and integrate the most important parts of the Company's business. The new system was critical to Lamb Weston's operations, as it was designed to manage supplier payments, inventories, warehousing, customer invoicing, and order shipments.

The Complaint alleges Defendants knew of, or recklessly disregarded, problems associated with the ERP system that would hinder its successful implementation, and that despite those issues, Lamb Weston pushed ahead with its implementation of an ERP system that was not ready to go live, knowing that a premature roll-out would have a material negative impact on the Company's business and operations. As a result, the Complaint alleges, the statements concerning its business, operations, and prospects, including its financial guidance for fiscal 2024, lacked a reasonable factual basis. In addition, to the extent the Company purported to warn of risks regarding the negative impacts from an unsuccessful implementation of the ERP system, Defendants omitted that such risks had already begun to materialize.