Lifecore Biomedical, Inc. (NASDAQ: LFCR) Securities Fraud Class Action

LEAD PLAINTIFF DEADLINE IS SEPTEMBER 27, 2024.

If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.

Case Background:
On January 12, 2024, Lifecore announced the receipt of a notification letter from the Listing Qualifications Department of the NASDAQ indicating that “as a result of the Company’s delay in filing its Quarterly Report on Form 10-Q for the fiscal quarter ended November 29, 2023 [] and its continued delay in filing its Annual Report on Form 10-K for the period ended May 28, 2023 [] and its Quarterly Report on Form 10-Q for the fiscal quarter ended August 27, 2023 [] with the [SEC],” Lifecore was not in compliance with the requirements for continued listing.  On this news, the price of Lifecore common stock declined $0.11 per share, or approximately 1.60%, from a close of $6.87 per share on January 12, 2024, to close at $6.76 per share on January 16, 2024.

Then on February 16, 2024, Lifecore announced that the company received a Staff Delisting Determination from the Listing Qualifications Department of NASDAQ “notifying the Company that [NASDAQ] has initiated a process which could result in the delisting of the Company’s securities from [NASDAQ.]”  Specifically, Lifecore stated that the Staff Determination was issued “because the Company has not filed its Annual Report on Form 10-K for the fiscal year ended May 28, 2023 [] or its Quarterly Reports on Form 10-Q for the quarterly periods ended August 27, 2023 [] and November 29, 2023 [] by the Extension Deadline.”  On this news, the price of Lifecore common stock declined $0.16 per share, or approximately 1.95%, from a close of $8.19 per share on February 16, 2024, to close at $8.03 per share on February 20, 2024.

Finally, on March 20, 2024, Lifecore announced its full year 2023 financial results, and revealed that despite Lifecore’s previous restatements and purported implementation of a remediation plan, the company’s Audit Committee had concluded that Lifecore’s previously issued consolidated financial statements as of and for the fiscal years ended May 29, 2022 and May 30, 2021, as well as Lifecore’s unaudited consolidated financial statements as of and for the periods ending August 30, 2020, November 29, 2020, February 28, 2021, August 29, 2021, November 28, 2021, February 27, 2022, August 28, 2022, November 27, 2022 and February 26, 2023, should no longer be relied upon and needed to be restated due to identification of errors in its prior financial statements related to adjustments involving the calculation of capitalized interest, valuation of inventories, and certain other adjustments related to previously divested businesses.  In addition, Lifecore adjusted certain other items that were previously identified in its prior financial statements and concluded as immaterial, individually and in the aggregate, to its prior financial statements.  On this news, the price of Lifecore common stock declined $2.18 per share, or approximately 30.32%, from a close of $7.19 per share on February 16, 2024, to close at $5.01 per share on March 20, 2024.

The complaint 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 misrepresented and/or failed to disclose that: (1) Lifecore maintained deficient internal control over financial reporting; (2) as a result, several of the company’s financial statements were inaccurate and would need to be restated; (3) Lifecore’s remediation efforts with respect to the foregoing deficiencies were ineffective; (4) all of the foregoing impaired Lifecore’s ability to timely file periodic reports with the SEC in compliance with NASDAQ listing requirements; (5) accordingly, the company’s financial position and/or prospects were materially overstated; and (6) as a result, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

What is a Lead Plaintiff?

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.