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LFCR.US

id: 1297

Lifecore Biomedical ($LFCR) $3.75M Investor Settlement

The court has approved the settlement.

$3,750,000

Cash Settlement

D. Minnesota

Court

0:24-cv-03028

Case number

10/07/2020

Class period Start

03/19/2024

Class period End

Lifecore Biomedical agreed to a settlement with $LFCR investors to resolve claims that it misled them about internal controls, inventory management, and financial reporting risks.

Outline:

Lifecore assured investors about its financial performance and operational stability between 2021 and 2023. Investors later alleged the company failed to disclose serious internal control and inventory management problems. As accounting issues surfaced and the company missed filings and received default notices, the stock declined sharply. Investors filed suit and Lifecore later reached a tentative settlement to resolve the claims.

Timeline:
September 2021–April 2023: Lifecore allegedly issued misleading statements about inventory and financial performance.
April 21, 2023: Lifecore announced it would miss its SEC filing deadline for its quarterly report.
May 2023: The company received a default notice from lenders.
July 2023: Lifecore disclosed material weaknesses in internal controls.
August 2023: The stock declined, and investors filed a class action complaint.
November 2025: The parties settled.
Background:

Lifecore Biomedical, formerly known as Landec Corporation, manufactures pharmaceutical-grade hyaluronan-based products used in medical and pharmaceutical applications. During the class period, the company presented its operations and financial reporting as stable while emphasizing growth and operational strength.

Investors later alleged that Lifecore failed to disclose persistent inventory management problems and accounting deficiencies. According to the claims, these issues affected the company’s financial reporting and would ultimately require restatements and additional review of its financial statements.

In April 2023, Lifecore warned it would not be able to file its quarterly report on time due to internal accounting problems. The delays triggered loan covenant breaches and led to default notices from lenders.

On July 10, 2023, the company disclosed material weaknesses in its internal controls, contradicting earlier assurances about the reliability of its financial reporting. Following these disclosures, $LFCR declined and investors alleged they suffered losses due to misleading statements about the company’s financial health.

What Can Investors Expect Now?

Lifecore Biomedical has agreed to a settlement with $LFCR investors to resolve claims tied to disclosures about internal controls, inventory management, and financial reporting risks.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.

Case Type

US Securities Class Action

Case Status

Preliminary Approved Settlement

Alleged Offence

Mismanagement,

Misleading Statements,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.2

Filing date

07/29/2024

Lead Plaintiff Deadline

09/27/2024

Plaintiffs

David Carew

Attorneys

Lockridge Grindal Nauen P.L.L.P. (Minneapolis , MN), Pomerantz LLP (New York, NY)

Defendants

Albert D. Bolles, James G. Hall, Brian McLaughlin, John Morberg

Judge

Hon. Jerry W. Blackwell

Administrator

Strategic Claims Services

Attorney fee

$1,250,000

Trades matching type

FIFO

Frequently Asked Questions

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