The Simply Good Foods Company faces class action over OWYN acquisition

The Simply Good Foods Company faces a federal securities class action lawsuit following its $280 million acquisition of the plant-based nutrition brand OWYN. The litigation, filed in the U.S. District Court for the Southern District of New York, covers investors who purchased company common stock between October 24, 2024, and April 8, 2026.

The complaint alleges that the company misled investors regarding the successful integration and performance of OWYN. While the acquisition was initially presented as a strategic move to expand presence in the ready-to-drink shake market, the lawsuit claims the integration was unsuccessful.

Specific allegations include the loss of key managerial personnel necessary for the transition, which reportedly led to increased general and administrative spending. Additionally, the lawsuit claims a change in pea protein suppliers negatively impacted product taste, texture, and shelf life, resulting in poor consumer reviews, weakened sales, and strained distributor relationships.