Krispy Kreme(US:DNUT) Prnewswireยท2025-05-23 11:00Core Viewpoint - The Krispy Kreme class action lawsuit alleges that the company and certain executives violated the Securities Exchange Act of 1934, with claims related to misleading statements and undisclosed risks regarding its partnership with McDonald's and subsequent financial performance [1][3]. Company Overview - Krispy Kreme, Inc. (NASDAQ: DNUT) produces doughnuts and has recently expanded its partnership with McDonald's, starting with a test in Louisville, Kentucky, in October 2022 and planning a nationwide rollout in the second half of 2024 [2][3]. Allegations of the Lawsuit - The lawsuit claims that demand for Krispy Kreme products significantly declined at McDonald's locations after the initial marketing launch, which negatively impacted average sales per door per week [3]. - It is alleged that the partnership with McDonald's was not profitable and posed substantial risks to maintaining the partnership, leading to a pause in expansion into new McDonald's locations [3]. Financial Performance - Krispy Kreme reported first-quarter 2025 financial results showing net revenue of $375.2 million, a decline of 15.3%, and a net loss of $33.4 million compared to a net loss of $6.7 million in the prior year [4]. - Following the financial results announcement, Krispy Kreme's share price fell by nearly 25%, and the company indicated it would reassess its deployment schedule with McDonald's and withdraw its prior full-year outlook due to uncertainties [4]. Legal Process - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Krispy Kreme securities during the class period to seek appointment as lead plaintiff in the lawsuit, representing the interests of the class [5]. Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder litigation, having secured over $2.5 billion for investors in 2024 alone [6].