A class action law suit has been filed on behalf of SunOpta Inc. (Nasdaq: STKL) shareholders against the company for alleged violations of the Securities Exchange Act.
SunOpta is a company in the natural and organic food, supplements and health and beauty markets.
The suit claims the company failed to disclose and misrepresented adverse facts about the company, resulting in a 37% decline in share prices on January 25, 2008.
On January 24, 2008, after the market closed, the company reported its anticipated financial results for 2007, disclosing that it expected to incur write-downs and provisions in the range of $12 million to $14 million. In addition, the company stated that it would likely restate financial results from previous quarters and would not be able to give revenue and earnings guidance for 2008.
The company attributed the write-downs to inventory within the SunOpta Fruit Group’s berry operations, as well as difficulties in collecting for services and equipment provided to a customer of the SunOpta BioProcess Group.
The suit was filed in the United States District Court for the Southern District of New York.
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