Robbins Geller Files Class Action Against Simply Good Foods Over Alleged Misrepresentations
News related to:The Simply Good Foods Company · 2 min read
SAN DIEGO, Sept. 18, 2026 /CourierPR/ -- Robbins Geller Rudman & Dowd LLP has filed a class action lawsuit against The Simply Good Foods Company (SMPL), alleging that the company and certain of its executive officers violated the Securities Exchange Act of 1934. The lawsuit, captioned Monroe County Employees' Retirement System v. The Simply Good Foods Company, No. 1:26-cv-06971 (S.D.N.Y.), seeks to hold the company accountable for alleged misrepresentations made during the Class Period, which spanned from October 24, 2024, to April 8, 2026.
According to the lawsuit, Simply Good Foods failed to disclose several key issues that impacted its business and financial performance. The company is accused of losing key managerial personnel following the acquisition of Only What You Need, Inc. (OWYN), which impaired its ability to achieve strategic initiatives and financial targets. Additionally, the lawsuit claims that Simply Good Foods increased its general and administrative spending to compensate for the loss of key personnel, leading to an inefficient organizational structure and a lack of clear strategic priorities.
Further allegations include the addition of a new pea protein supplier for OWYN formulations, which created significant product quality issues. These issues negatively impacted the taste, texture, and shelf-life of OWYN products, leading to negative product reviews, depressed consumer sales, and the loss of important distributor relationships. The lawsuit also states that Simply Good Foods offered discounts and engaged in promotional activities for OWYN products above its historical practices, eroding margins without achieving the desired sales turnaround. Additionally, the company is accused of cutting brand support and marketing for OWYN, further depressing product sales.
On October 23, 2025, Simply Good Foods reported financial results for its fourth fiscal quarter and year ending August 30, 2025, revealing that the OWYN segment had experienced a slowdown in sales growth. During the related earnings call, Geoff E. Tanner, a company executive, revealed that end user consumption of OWYN branded products had declined due to a previously undisclosed product quality issue. This news caused the price of Simply Good Foods common stock to fall by more than 17%.
On April 9, 2026, Simply Good Foods announced its second quarter of 2026 earnings results, revealing that the OWYN segment's quarterly sales had contracted by nearly 17% year-over-year. The company also disclosed a $187 million impairment charge against its OWYN brand intangible assets and slashed its 2026 net sales outlook to a range of negative 7% to negative 10%. This news caused the price of Simply Good Foods common stock to fall by more than 27% over a two-day trading period.
Robbins Geller Rudman & Dowd LLP, known for its extensive experience in prosecuting investor class actions, has represented investors in numerous high-profile cases. According to the firm, it ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report, recovering more than $916 million for investors in 2025. Over the past five years, Robbins Geller has recovered a total of $8.4 billion for investors, $3.4 billion more than any other law firm. The firm has 200 lawyers in 10 offices and has obtained many of the largest securities class action recoveries in history, including the largest ever, $7.2 billion, in In re Enron Corp. Sec. Litig.