Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against The Simply Good Foods Company (SMPL)

NEW YORK, Aug. 17, 2026 (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 or otherwise acquired The Simply Good Foods Company (“Good Foods” or the “Company”) (NASDAQ: SMPL) securities between October 24, 2024 and April 8, 2026, inclusive (the “Class Period”).

The Complaint alleges that on April 29, 2024, Good Foods announced an agreement to acquire OWYN for $280 million in an all-cash transaction (“Acquisition”) and that OWYN specializes in plant-based RTD protein shakes. The Complaint further alleges that on June 13, 2024, Good Foods completed the Acquisition. The Complaint continues to allege that subsequently, defendants claimed that OWYN was being successfully integrated into the Company’s operations, for example, speaking during an October 2024 earnings call, Tanner stated that the integration of OWYN was “progressing as planned” and assured investors that he “remain[ed] confident” in the Company’s ability to “effectively integrate OWYN.” The Complaint further alleges that Tanner updated investors in October 2025, representing that the OWYN integration had been “largely completed” and “gone well.” The Complaint also alleges that Defendants further claimed that positive market trends and the successful execution of the Company’s strategic initiatives had buoyed its operations and financial results, including within its OWYN segment.

The Complaint alleges that unbeknownst to investors, the integration of OWYN into Good Foods had been a failure. The Complaint continues to allege that key managers fled the Company after the Acquisition. The Complaint further alleges that Good Foods attempted to remedy the personnel loss by imposing a layered organizational structure which would later be described as bloated and lacking in strategic cohesion. The Complaint alleges that Product quality control issues – including the decision to switch to an inferior supplier of pea protein prior to the close of the Acquisition but implemented soon thereafter – negatively impacted sales and customer loyalty. The Complaint alleges that as execution failures and increased management costs led to margin erosion, Good Foods began heavy discounting activities and cut brand support, compounding its sales problems. The Complaint further alleges that just two years after the Acquisition, Good Foods would take a cumulative $200 million impairment on its OWYN assets – more than 70% of the purchase price. The Complaint alleges that by then, the architect of the Acquisition – Tanner – had stepped down, his replacement, returning CEO Joseph Scalzo (“Scalzo”), belatedly admitted that, rather than “progressing as planned,” the Acquisition had in fact fallen far short of expectations as a result of operational missteps, product quality issues, the loss of key personal, and strategic blunders made in connection with the integration.

The Complaint alleges that as a result of these revelations, the price of Good Foods shares declined more than 70% from Class Period highs of more than $40 per share to less than $11 per share by Class Period end, causing investors to suffer substantial financial losses and economic damages.

Investors who purchased or otherwise acquired shares of Good Foods should contact the Firm prior to the October 13, 2026 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.