Saxena White P.A. Files Securities Fraud Class Action Lawsuit Against Lamb Weston Holdings, Inc. and Certain of Its Executives, Expanding the Class Period and Allegations Asserted in Related Action

Core Viewpoint - Saxena White P.A. has initiated a securities fraud class action lawsuit against Lamb Weston Holdings, Inc. and certain executives, alleging false and misleading statements regarding the implementation of a new Enterprise Resource Planning (ERP) system, which negatively impacted the company's performance during the class period from July 25, 2023, to July 23, 2024 [1][2]. Group 1: Class Action Details - The class action expands the allegations from a previous lawsuit, extending the class period and asserting that the defendants misrepresented the status and risks associated with the ERP system implementation [2]. - Investors wishing to serve as lead plaintiff must file a motion by August 12, 2024, as per the Private Securities Litigation Reform Act [3]. Group 2: Company Background - Lamb Weston, based in Eagle, Idaho, is a major producer of frozen potato products, including French fries, primarily supplying fast-food chains like McDonald's [4]. - The company had previously emphasized the importance of transitioning to an updated ERP system to enhance productivity and reduce costs, but the implementation was paused due to COVID-19 challenges [4]. Group 3: ERP Implementation Issues - By the start of the class period, Lamb Weston announced the completion of design work for its new ERP system, with some central systems transitioned by late November 2023 [5]. - The class action alleges that ongoing issues with the ERP system hindered its successful implementation, and the company proceeded with an unready system, leading to significant operational risks [6]. Group 4: Financial Impact and Stock Performance - The company's financial results revealed a 16% decline in sales volumes for the fiscal third quarter of 2024, with half attributed to unfilled customer orders due to the ERP transition, leading to a $330 million reduction in sales outlook [7]. - Following the release of disappointing results for the fiscal fourth quarter and full year 2024, net sales decreased by $135 million, and sales volume dropped 10% year-over-year, causing a more than 28% decline in stock price [8].