Inventure Foods Facing More Class Action Litigation Following Sale to Utz Quality Foods

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Three more proposed class action lawsuits have been filed in Arizona against Inventure Foods, Inc. and members of its board of directors over an October 2017 agreement to sell the company to Utz Quality Foods, LLC and Heron Sub, Inc.— themselves defendants in one of the complaints (2:17-cv-04296-BSB). The cases say the proposed deal between the companies is valued at approximately $165 million. 

The three lawsuits, in lockstep with five previous class actions filed against Inventure last week, take issue a Solicitation/Recommendation Statement filed by the defendants with the U.S. Securities and Exchange Commission (SEC) on November 15, 2017. According to the complaints, the statement unlawfully left out material information about the proposed transaction—namely Inventure’s financial advisor’s management forecasts and insight into the background process leading up to the merger—details the plaintiffs argue are necessary for stockholders to make a fully informed decision when considering whether to tender their shares in support of the deal or seek appraisal.

Claiming the proposed transaction between Inventure and Utz and Heron Sub will illegally divest the former’s stockholders of valuable assets without first having all the facts, the cases seeks for the court to enjoin the expiration date on the tender offer between the parties until the defendants’ supposed securities law violations are remedied. 

The complaints can be read below.