Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against United Natural Foods, Inc. (UNFI)

/EIN News/ -- NEW YORK, March 22, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased the securities of United Natural Foods, Inc. (“United Natural Foods” or the “Company”) (NYSE: UNFI) between March 10, 2021 and March 7, 2023, both dates inclusive (the “Class Period”).

The Complaint alleges that on March 8, 2023, United Natural Foods announced its second quarter 2023 financial results, revealing a $6 million decline in gross profits, despite a 6% increase in net sales. The Company stated that its profits “were challenged as we did not repeat the significant level of procurement gains from rapidly accelerating inflation and inventory gains, due to supply chain volatility, that we experienced in the second quarter of last year.” On this news, the Company’s stock price fell $11.49, or 28.1%, to close at $29.47 per share on March 8, 2023, injuring investors.

The Complaint alleges that Defendants failed to disclose to investors: (1) that, despite its cost saving Value Path initiative, United Natural Foods had not invested in improving its data management and related infrastructure; (2) that, as a result, the Company could not respond adequately to cost changes, such as inflationary pressure; (3) that, as a result, the Company could not appreciate the benefits of procurement gains and inventory gains achieved during fiscal 2022; and (4) that, as a result of the foregoing, the Company’s profitability would be materially adversely impacted.

Investors who purchased or otherwise acquired shares of United Natural Foods should contact the Firm prior to the May 19, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.