Conagra Investors Sue, Allege Company Hid Problems Related To $11B Pinnacle Acquisition

A pension fund has filed a lawsuit in Illinois federal court alleging that Conagra Brands Inc. tricked investors into approving its nearly $11 billion acquisition of Pinnacle Foods Inc. Conagra, a massive packaged foods company and component of the S&P 500, told investors that acquiring Pinnacle was a “no brainer” and would help the company expand its frozen food and snack offerings. Then, after the merger closed in late 2018, they revealed serious financial problems with Pinnacle, according to the lawsuit. Conagra’s stock price fell significantly as a result. The complaint states: “Unbeknownst to shareholders … Conagra and its management were aware or recklessly disregarded that the transaction would not result in anywhere near the sort of benefits that defendants had publicly represented.” Lead-up To Acquisition According to the pension fund’s suit, Conagra announced that it would acquire Pinnacle in June, 2018. Conagra CEO Sean…

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