Jan 27, 2026 (MarketLine via COMTEX) --
The lawsuit alleges Beyond Meat aEURoeissued false and misleading statements and/or failed to disclose material adverse factsaEUR.
Beyond Meat shareholders are taking legal action against the alt-protein business, claiming it aEURoefailed to disclose material adverse factsaEUR.
Represented by Holzer & Holzer, the shareholders' main gripe appears to revolve around a $77.4m impairment charge that Nasdaq-listed Beyond Meat eventually revealed in November.
The loss-making company had issued a warning in October of a pending "material" impairment charge and then later in the month delayed its third-quarter results presentation as the group continued to assess and aEURoequantifyaEUR the size of the impairment.
Between those two announcements, Beyond MeataEUR(TM)s shares extended losses for 2025 from around 42% to 63%, despite a brief short-covering rally. Earlier in October, the stock price had entered penny stock territory below $1.00.
While the shares were hammered throughout last year by a series of adverse internal events, including an exit from China and a maturity-extending debt swap, Holzer & Holzer specified a timeframe where shareholders were supposedly hurt.
aEURoeIf you purchased Beyond Meat shares between February 27, 2025, and November 11, 2025, and experienced a significant loss on that investment, you are encouraged to discuss your legal rightsaEUR with the law firm, the litigation representative said in a statement yesterday (26 January).
The statement added: aEURoeThe lawsuit alleges that defendants issued false and misleading statements and/or failed to disclose material adverse facts regarding Beyond Meat's business, operations, and prospects.aEUR
It detailed those facts: aEURoeThe book value of certain of Beyond MeataEUR(TM)s long-lived assets exceeded their fair value, making it highly likely that the company would be required to record a material, non-cash impairment charge.aEUR
And: aEURoeThe foregoing was likely to impair Beyond MeataEUR(TM)s ability to timely file its periodic filings with the SEC [The US Securities and Exchange Commission]."
Beyond Meat had not responded to Just FoodaEUR(TM)s request for comment on the legal action and claims at the time of writing.
On the timeline, Beyond Meat disclosed the $77.4m impairment on 10 November, noting the charges were related to some aEURoelong-lived assetsaEUR.
Other cited factors included the aEURoesuspension and substantial cessationaEUR of Beyond MeataEUR(TM)s operations in China aEUR" revealed in February aEUR" aEURoecertain non-routine SG&A expensesaEUR, and aEURoeincremental arbitration-related legal expensesaEUR.
The initial impairment warning had come on 24 October in a filing with the SEC.
aEURoeThe companyaEUR(TM)s recoverability test, conducted in accordance with ASC 360, preliminarily indicated that the carrying amount of certain of its long-lived assets was not recoverable from the projected undiscounted future cash flows of the relevant asset group,aEUR Beyond Meat explained at the time.
Then early in November - before the final impairment assessment aEUR" the third-quarter results were delayed, followed later in the month by Beyond Meat revealing plans to turnaround the business through aEURoestrategic initiativesaEUR and an endeavour to boost gross profit margins.
What the Holzer & Holzer statement did not discuss is that Beyond Meat has not turned a profit since it went public on the Nasdaq exchange in 2019. Nor the fact its sales and volumes have been in steady decline across the companyaEUR(TM)s key markets in the US and Europe amid a general loss in appetite for plant-based meats.
Ahead of the final results for 2025 scheduled for 25 February, Beyond Meat took the unusual step of entering the protein drinks category earlier this month. The shares have started off the new year in the red aEUR" down 7.7% so far at $0.88. They have lost 78% in the past 12 months.
http://www.datamonitor.com
Republication or redistribution, including by framing or similar means,
is expressly prohibited without prior written consent. Datamonitor shall
not be liable for errors or delays in the content, or for any actions
taken in reliance thereon
COMTEX_472469574/2227/2026-01-27T09:58:09
Copyright (C) 2026 Datamonitor. All rights reserved
