BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased BellRing Brands, Inc. (“BellRing ” or the Company”) (NYSE: BRBR) securities between November 19, 2024 and August 4, 2025, inclusive (the “Class Period”). BellRing investors have until March 23, 2026 to file a lead plaintiff motion.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN BELLRING BRANDS, INC. (BRBR), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Happened?
On May 6, 2025, BellRing disclosed that “several key retailers lowered their weeks of supply on hand, which is expected to be a mid-single-digit headwind to [the Company’s] third quarter growth,” lowering expectations of third quarter net sales growth to low single digits, further stating that retailers had been “hoarding inventory to make sure that they didn’t run out of stock on shelf” and “protecting themselves coming out of capacity constraints.”
On this news, BellRing’s stock price fell $14.88, or 19%, to close at $63.55 per share on May 6, 2025, thereby injuring investors.
Then, on August 4, 2025, BellRing released its third quarter 2025 financial results and lowered its net sales outlook for fiscal 2025, citing competitive headwinds. In an earnings call the following day, the Company stated that although BellRing had secured new inventory space with a large club retailer, “several other competitors gained . . .space as well. So we’re assuming this increases some competitive pressure in club[.]”
On this news, BellRing’s stock price fell $17.46, or 32.6%, to close at $36.18 per share on August 5, 2025, thereby injuring investors further.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) contrary to Defendants’ repeated representations, their strong sales results did not reflect increased end-consumer demand or brand momentum; (2) instead, customers accumulated excess inventory as a safeguard against product shortages that had previously constrained BellRing’s supply; (3) Once customers gained confidence that product shortages were a thing of the past, they promptly reduced their inventory by selling through existing products and cutting back on new orders; (4) Following the destocking, the Company admitted that competitive pressures were materially weakening demand; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you purchased BellRing securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: [email protected],
Visit our website at: www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
[email protected]
www.howardsmithlaw.com
