Kaskela Law LLC is currently investigating potential breach of fiduciary duty claims concerning Lifecore Biomedical, Inc. (NASDAQ: LFCR) (“Lifecore” or the “Company”), formerly known as Landec Corporation, on behalf of the company’s long-term investors.
Recently a securities fraud complaint was filed against Lifecore on behalf of certain investors who purchased shares of the company’s stock between October 7, 2020, and March 19, 2024. According to the complaint, during the Relevant Period, Lifecore and several of the company’s senior executive officers misrepresented and/or failed to disclose that: (i) Lifecore recklessly maintained deficient internal controls over financial reporting; (ii) as a result of the deficient internal controls, the Company issued numerous financial statements that materially misstated the Company’s revenue, profits, and operating losses; (iii) Lifecore’s purported remediation efforts with respect to the internal control deficiencies were ineffective; and (iv) all of the foregoing impaired Lifecore’s ability to timely file periodic reports with the SEC in compliance with NASDAQ listing requirements.
As further detailed in the complaint, on September 14, 2022, in the first of what would ultimately be a series of sixteen such disclosures over the next year and a half, Lifecore revealed that due to a previously undisclosed material weakness in the Company’s internal control over financial reporting, it’s disclosure controls and procedures were not effective and that the Company was restating several previously issued financial statements and earnings releases. Following this and subsequent disclosures, shares of the Company’s common stock declined in value from over $8.25 per share to approximately $5.00 per share.
The investigation seeks to determine whether the members of Lifecore’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.
Current Lifecore shareholders who have owned the company’s shares since at least September 21, 2022 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750, or by completing the form on this page, to receive additional information about this investigation and their legal rights and options.