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Kevin E.T. Cunningham, Jr.

Associate

D   610.822.0253

Kevin Cunningham is an associate of the Firm, and focuses his practice in securities litigation. Kevin is a graduate of Temple University Beasley School of Law.  Prior to joining the Firm, Kevin served as a law clerk for the Hon. Judge Paula Dow of the New Jersey Superior Court, Burlington County - Chancery Division.  Kevin also served as a law clerk to the Hon. Brian A. Jackson of the United States District Court for the Middle District of Louisiana. Kevin is licensed to practice in Pennsylvania and the District of Columbia. 

Memberships

  • Pennsylvania Bar Association
  • American Bar association

Awards/Rankings

  • Order of the Barristers Award - 2017
  • First Place and Best Oral Advocate - 2016 Philadelphia Region Moot Court Competition
Experience

Current Cases

  • CASE CAPTION            In re re Kraft Heinz Securities Litigation
    COURT United States District Court for the Northern District of Illinois
    CASE NUMBER 1:19-cv-01339
    JUDGE Honorable Robert M. Dow, Jr.
    PLAINTIFF Union Asset Management Holding AG, Sjunde Ap-Fonden, and Booker Enterprises Pty Ltd.
    DEFENDANTS The Kraft Heinz Company (“Kraft” or the “Company”), 3G Capital Partners, 3G Capital, Inc., 3G Global Food Holdings, L.P., 3G Global Food Holdings GP LP, 3G Capital Partners LP, 3G Capital Partners II LP, 3G Capital Partners Ltd., Bernardo Hees, Paulo Basilio, David Knopf, Alexandre Behring, George Zoghbi, and Rafael Oliveira
    CLASS PERIOD November 5, 2015 through August 7, 2019, inclusive

    This securities fraud class action case arises out Defendants’ misstatements regarding the Company’s financial position, including the carrying value of Kraft Heinz’s assets, the sustainability of the Company’s margins, and the success of recent cost-cutting strategies by Kraft Heinz.

    Kraft Heinz is one of the world’s largest food and beverage manufacturer and produces well-known brands including Kraft, Heinz, Oscar Mayer, Jell-O, Maxwell House, and Velveeta. The Company was formed as the result of the 2015 merger between Kraft Foods Group, Inc. and H.J. Heinz Holding Corporation. That merger was orchestrated by the private equity firm 3G Capital (“3G”) and Berkshire Hathaway with the intention of wringing out excess costs from the legacy companies. 3G is particularly well-known for its strategy of buying mature companies with relatively slower growth and then cutting costs using “zero-based budgeting,” in which the budget for every expenditure begins at $0 with increases being justified during every period.

    Plaintiffs allege that Kraft misrepresented the carrying value of its assets, sustainability of its margins, and the success of the Company’s cost-cutting strategy in the wake of the 2015 merger. During the time that Kraft was making these misrepresentations and artificially inflating its stock price, Kraft’s private equity sponsor, 3G Capital, sold $1.2 billion worth of Kraft stock.

    On February 21, 2019, Kraft announced that it was forced to take a goodwill charge of $15.4 billion to write-down the value of the Kraft and Oscar Mayer brands—one of the largest goodwill impairment charges taken by any company since the financial crisis. In connection with the charge, Kraft also announced that it would cut its dividend by 36% and incur a $12.6 billion loss for the fourth quarter of 2018. That loss was driven not only by Kraft’s write-down, but also by plunging margins and lower pricing throughout Kraft’s core business. In response, analysts immediately criticized the Company for concealing and “push[ing] forward” the “bad news” and characterized the Company’s industry-leading margins as a “façade.”

    Heightening investor concerns, Kraft also revealed that it received a subpoena from the U.S. Securities and Exchange Commission in the same quarter it determined to take this write-down and was conducting an internal investigation relating to the Company’s side-agreements with vendors in its procurement division. Because of this subpoena and internal investigation, Kraft was also forced to take a separate $25 million charge relating to its accounting practices. Plaintiffs allege that because of the Company’s misrepresentations, the price of Kraft’s shares traded at artificially-inflated levels during the Class Period.

    On August 11, 2021, The Honorable Robert M. Dow, Jr. sustained Plaintiffs’ complaint. The case is now in discovery.  In March 2022, Plaintiffs moved for class certification.  

    Read Consolidated Amended Class Action Complaint Here

    Read Opinion and Order Denying Motion to Dismiss Here

    Read Motion for Class Certification Here

Publications

Kevin Eugene Thomas Cunningham Jr., Fine China? A Look into Chinese Intellectual Property Infringement, Treaty Obligations, and International Responses 99 J. Pat. & Trademark Off. Socy. 279 (2017).

Kevin Eugene Thomas Cunningham Jr., Two's Company: The Rise in Chinese PCT Participation and What it Means for Japan 99 J. Pat. & Trademark Off. Socy. 670 (2017).