Important Notice Regarding Alleged OWYN Integration Misrepresentations: A securities class action alleges Simply Good Foods told investors the $280 million OWYN acquisition was “progressing as planned” while integration failures allegedly mounted, ending in a cumulative $200 million impairment.

NEW YORK, Aug. 26, 2026 /PRNewswire/ — Levi & Korsinsky, LLP notifies investors in The Simply Good Foods Company (NASDAQ: SMPL) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between October 24, 2024 and April 8, 2026. Find out if you could qualify to recover your losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

Simply Good Foods acquired OWYN for $280 million. Within roughly two years, the Company recorded a cumulative $200 million impairment on OWYN assets, more than 70% of the purchase price, including a $187 million charge disclosed in April 2026. Fiscal 2026 net sales guidance was ultimately cut to a range of negative 7% to negative 10%.

The Alleged OWYN Integration Failure at the Center of This Securities Fraud Claim

According to the lawsuit, management repeatedly told the market the OWYN integration was proceeding as planned and later that it had been largely completed and had “gone well.” The complaint alleges that in reality the integration had run into severe execution problems, that key managerial personnel had departed following the acquisition, and that product quality issues were suppressing consumer sales and damaging distributor relationships.

Key OWYN Integration Allegations for Shareholders

• The lawsuit contends the Company lost key managerial talent after the acquisition, impairing its ability to hit the acquisition model commitments it publicized.
• Fiscal 2025 OWYN net sales were guided to $135 million to $145 million, a projected 20% to 30% increase, while alleged integration breakdowns were already developing.
• The complaint alleges general and administrative spending was materially increased to compensate for lost personnel, producing an organizational structure later described as bloated and lacking strategic cohesion.
• Plaintiffs allege discounting and promotional activity above historical practice was used to prop up short-term sales, eroding margins without producing a turnaround.
• The lawsuit contends brand support and marketing for OWYN were then cut to stem margin erosion, further depressing sales.
• The complaint alleges the acquisition’s economic rationale was undermined, culminating in the $200 million cumulative write-down.

How the Alleged Integration Problems Affected Reported Results

By the second quarter of fiscal 2026, OWYN quarterly sales had contracted by nearly 17% year over year, according to the Company’s own reporting. Returning leadership later acknowledged that gross margins had moved to the middle 30s against an ideal structure approaching 40%, and that priorities were not always clear and execution did not consistently meet the standard required to compete. The complaint alleges investors purchased shares at artificially inflated prices while these conditions were not disclosed.

“This case presents important questions about integration and acquisition disclosure obligations in the packaged foods sector,” said Joseph E. Levi, Esq. “The complaint alleges shareholders were told the OWYN integration was progressing as planned while, as pleaded, the Company was writing toward an eventual $200 million impairment.”

Submit your information here or call (212) 363-7500.

WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the SMPL Lawsuit

Q: What is the SMPL class action lawsuit about? A: A securities class action has been filed against The Simply Good Foods Company (NASDAQ: SMPL) alleging materially false and misleading statements between October 24, 2024 and April 8, 2026. Shares fell more than 70% from Class Period highs after the Company disclosed OWYN product quality issues, a $187 million impairment charge against OWYN intangible assets, and slashed fiscal 2026 net sales guidance. Investors who purchased shares during the Class Period and suffered losses may be eligible to seek compensation.

Q: Who is eligible to join the SMPL investor lawsuit? A: Investors who purchased SMPL stock or securities between October 24, 2024 and April 8, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses — not on whether you still hold the shares.

Q: What specific misstatements does the SMPL lawsuit allege? A: The complaint alleges Simply Good Foods made materially false or misleading statements regarding the integration and performance of the OWYN acquisition during the Class Period. When the OWYN sales contraction, product quality issues, and impairment charge were disclosed, the stock price declined sharply.

Q: What do SMPL investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my SMPL shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys’ fees and expenses subject to court approval.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

Applications to serve as lead plaintiff must be filed by October 13, 2026.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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SOURCE Levi & Korsinsky, LLP