The legal action, filed in the Southern District of New York under the case Monroe County Employees' Retirement System v. The Simply Good Foods Company, centers on the company’s 2024 acquisition of OWYN. Executives are accused of obscuring a raw material sourcing decision involving pea protein that compromised the taste and texture of products as they aged. This oversight led to widespread negative consumer feedback and a sharp decline in sales growth.

The impact on the company's valuation proved significant. Following the initial disclosure of the OWYN segment's struggles in October 2025, share prices dropped by more than 17%. A subsequent earnings report in April 2026 revealed a 17% contraction in quarterly sales and a $187 million impairment charge, triggering a further 27% decline in stock value over two trading days. Investors seeking legal evaluation are directed to the firm Kahn Swick & Foti, LLC via the ClaimsFiler service portal.