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BellRing Brands, Inc. (NYSE:BRBR), a $4.2 billion consumer goods company with annual revenues exceeding $2.2 billion, disclosed Thursday that it has entered into settlement agreements to resolve multiple class action lawsuits related to its Joint Juice product, according to a statement based on a recent SEC filing. According to InvestingPro data, the company maintains strong financial health with liquid assets exceeding short-term obligations.
The company reported that its subsidiary, Premier Nutrition Company, LLC, has been involved in class action cases in the U.S. District Court for the Northern District of California and the Superior Court for the State of California, County of Alameda. These cases, collectively referred to as the Joint Juice Litigation, sought monetary damages and injunctive relief for consumers in several states. The legal developments come as BellRing’s stock trades near its 52-week low, having declined over 55% in the past six months.
On October 17, the parties executed a Stipulation of Settlement in the California Federal Class Lawsuit. On Monday, the plaintiff filed an unopposed motion for preliminary approval of the settlement, which is currently pending. Under the terms of this agreement, if the court grants final approval and the settlement becomes effective, Premier Nutrition will pay $19.2 million into a settlement fund to resolve the California Federal Class Lawsuit. The settlement does not represent an admission of liability or wrongdoing by BellRing Brands or its current or former directors or officers.
On Wednesday, the parties executed a separate Stipulation of Settlement covering related federal actions and a California state case, collectively called the Multistate Settlement. On Thursday, the plaintiff filed an unopposed motion for preliminary approval of this settlement, which is also pending. If approved by the court and made effective, Premier Nutrition will pay $70.8 million into a settlement fund to resolve these cases. This agreement similarly does not constitute an admission of liability or wrongdoing by the company or its leadership.
BellRing Brands noted that there is no assurance the proposed settlements will receive final court approval. If either settlement is not approved, the company stated it will continue to pursue its legal defenses.
The information in this article is based on a press release statement and SEC filing by BellRing Brands. InvestingPro analysis suggests the company is currently undervalued, with multiple additional insights available through their comprehensive Pro Research Report. Discover more detailed analysis and 10 key InvestingPro Tips for BRBR, along with extensive financial metrics and expert insights, by visiting InvestingPro.
In other recent news, BellRing Brands has been the focus of several analyst reports and ratings adjustments. Bernstein SocGen Group initiated coverage with an Outperform rating, setting a price target of $46.00. Mizuho also maintained an Outperform rating but lowered its price target significantly to $45.00 due to growth concerns. Meanwhile, JPMorgan assumed coverage with an Overweight rating and a price target of $52.00, citing the strong performance of BellRing’s Premier Protein brand. Stifel reiterated a Buy rating with a $66.00 price target, highlighting a 44% increase in Premier brand consumption, aided by a Costco member savings event. DA Davidson also reiterated a Buy rating following a meeting with BellRing’s leadership team, though they did not specify a price target. These developments come as BellRing navigates challenges affecting its earnings, including retailer inventory shifts and increased promotions. The stock has notably declined since early May, reflecting these ongoing challenges.
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