The current litigation concerns misrepresentations about Inventure’s Jefferson, Georgia food packaging facility, its need for capital improvements, and its need for corrective actions necessary to guard against unsanitary conditions and comply with Federal law.
The Georgia Department of Agriculture Food Safety Division inspected the Jefferson facility on October 22, 2014, identifying unsafe and unsanitary conditions that “may cause contamination of food being processed[.]”
Inventure provided a plan to the agency on November 17, 2014 promising to ensure the bag storage room was thoroughly clean and eliminate standing water. But, in a complaint submitted to the U.S. Food and Drug Administration on March 2, 2015, the complainant reported concerns that vegetables went through mold contaminated machinery and bacterial growth resulted from standing water.
On April 23, 2015, Inventure announced a recall of certain food products because its Jefferson facility tested positive for Listeria. On this news the price of Inventure’s stock fell nearly 19% to close at $9.40 per share that day.
“Inventure knew no later than October 2014 that its Jefferson facility had huge problems,” said Hagens Berman partner Reed Kathrein. “Its April 2015 disclosures demonstrate it did not remediate them, and as a result Inventure investors suffered enormous losses.”