The Simply Good Foods Company is facing a class action lawsuit over earnings and product quality issues, with sales of its OWYN segment declining due to a raw material sourcing decision that led to taste and texture issues.
Why it matters. Investors and consumers are affected by the decline in sales and the potential legal implications for the company.
slashed its 2026 net sales outlook to a range of negative 7% to negative 10%.
OWYN's quarterly sales had contracted by nearly 17% year-over-year.
Simply Good Foods also provided disappointing 2026 net sales guidance in the range of negative 2% to positive 2%
Simply Good Foods' stock price fell $2.61 per share, or 18.11%, to close at $11.80 per share on April 9, 2026.
Simply Good Foods further revealed a $187 million impairment charge against its OWYN brand intangible assets
On this news, Simply Good Foods' stock price fell $4.33 per share, or 17.35%, to close at $20.63 per share on October 23, 2025.
NEW YORK, Oct. 8, 2026 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against The Simply Good Foods Company ("Simply Good Foods" or the "Company") (NASDAQ: SMPL).
During the related earnings call, CEO Geoff E. Tanner revealed that end user consumption of OWYN branded products had declined due to a previously undisclosed product quality issue. Specifically, Tanner explained that "a raw material sourcing decision for pea protein," which pre…
