Flowers Foods resolves putative securities class actions
Clients Flowers Foods, Inc.
Jones Day represented Flowers Foods, Inc. in two putative securities fraud class actions filed against Flowers and certain officers and directors. The lawsuits alleged that Flowers and certain individual defendants made materially false and misleading statements during the putative class period of February 7, 2013, through August 10, 2016. In summary, the plaintiffs generally alleged that Flowers improperly classified employees as independent contractors and that this alleged misclassification exposed Flowers to legal liability and negative regulatory action. The matter asserted fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Jones Day successfully resolved the dispute through settlement.
Hendley v. Flowers Foods, Inc., et al., No. 7-16-cv-00222 (M.D. Ga.); In re Flowers Foods, Inc. Securities Litigation, Nos. 1-16-cv-06417, -06523 (S.D.N.Y.)