Beyond Meat investors are beyond mad
Beyond Meat — a brand that was once the face of plant-based protein — appears to be losing its stature. On top of two lawsuits in 2022, the company is now facing a class action lawsuit from its own investors.
They are claiming that they were misled by the company’s manufacturing and growth projections.
Following the company’s decision to go public in 2019 based on its market growth potential, Beyond Meat has faced a series of financial hardships. Despite an increase in the global vegan food market, the plant-based meat powerhouse is losing capital. Compared to last year’s first-quarter revenue reports, the company is down 15.7% in 2023 with a noticeable decrease in sales per pound.
The litigation, brought to Beyond Meat by the Retail Wholesale Department Store Union 338 Retirement Fund, accuses the plant-based meat brand of deceiving its public investors by over-estimating its manufacturing capacity and growth projections. The company’s CEO Ethan Brown blames both market competition and inflation as the cause of the decrease in sales (via Business Insider).
However, according to the lawsuit, investors believe that Brown and other corporate members intentionally deceived them over several potential growth opportunities and the company’s financial well-being.
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BY ALLISON LINDSEY | MASHED
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