BellRing Brands Faces Class Action Lawsuit for Securities Fraud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Globenewswire
- Class Action Filed: Bleichmar Fonti & Auld LLP has initiated a class action lawsuit against BellRing Brands and its executives for securities fraud, resulting in a 19% stock drop on May 6, 2025, from $78.43 to $63.55, indicating severe investor concerns about the company's financial health.
- False Sales Growth: The lawsuit alleges that BellRing's claimed sales growth was not driven by consumer demand but rather by key customers stockpiling inventory, revealing weakened actual demand and increased competitive pressures that could adversely affect future sales performance.
- Guidance Downgrade: In its August 4, 2025 earnings report, BellRing narrowed its fiscal year 2025 net sales outlook, with the CEO noting competitors gaining market share, leading to a nearly 33% stock drop on August 5, from $53.64 to $36.18, reflecting market pessimism about future growth prospects.
- Legal Implications for Investors: Investors are encouraged to apply to lead the case by March 23, 2026, with BFA offering legal support on a contingency basis, highlighting the potential liabilities for the company and the protection of investor rights.
Analyst Views on BRBR
Wall Street analysts forecast BRBR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BRBR is 39.17 USD with a low forecast of 27.00 USD and a high forecast of 52.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
9 Buy
4 Hold
0 Sell
Moderate Buy
Current: 27.660
Low
27.00
Averages
39.17
High
52.00
Current: 27.660
Low
27.00
Averages
39.17
High
52.00
About BRBR
BellRing Brands, Inc. is engaged in the global convenient nutrition category offering ready-to-drink shake and powder protein products. The Company's primary brands, Premier Protein and Dymatize, appeal to a range of consumers and are distributed across a diverse network of channels including club, food, drug, mass, e-commerce, specialty and convenience. Premier Protein is a mainstream lifestyle brand. Premier Protein’s product portfolio consists primarily of RTD protein shakes and protein powders. Premier Protein’s flagship RTD protein shakes are available in diverse flavors and contain 30 grams of protein and 160 calories. Premier Protein’s powder portfolio consists primarily of 100% whey protein products. Dymatize brand’s portfolio includes an assortment of sports nutrition products, including protein powders. Its protein powder portfolio consists of three primary products: ISO.100 made with hydrolyzed 100% Whey Protein Isolate, Elite 100% Whey and Super Mass Gainer.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
