The legal complaint alleges that Simply Good Foods misled shareholders between October 24, 2024, and April 8, 2026, by concealing critical operational failures following its acquisition of OWYN. According to the filing, the company allegedly failed to disclose the departure of key managerial personnel essential to the integration process and the subsequent surge in administrative spending required to mitigate these losses.

The lawsuit further contends that the introduction of a new pea protein supplier triggered significant quality control issues, while aggressive promotional tactics eroded profit margins. To address these financial pressures, the company reportedly slashed marketing and brand support, which further suppressed sales. Plaintiffs claim these omissions rendered the company's public statements regarding its business health and the strategic success of the OWYN acquisition materially false or lacking a reasonable basis.