Philadelphia, Pennsylvania--(Newsfile Corp. - August 18, 2026) - Grabar Law Office is investigating claims on behalf of shareholders of The Simply Good Foods Company (NASDAQ: SMPL).

What is This Investigation About? The investigation concerns whether certain officers and directors breached the fiduciary duties they owed to the company.

If you purchased The Simply Good Foods Company (NASDAQ: SMPL) shares before February 24, 2024, and still hold shares today, you can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever. You are encouraged to visit https://grabarlaw.com/the-latest/smpl-shareholder-investigation/, contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085.

What is Alleged? As alleged in a recently filed securities fraud class action Complaint, The Simply Good Foods Company (NASDAQ: SMPL), through certain of its officers, made materially false and misleading statements and/or failed to disclose materially adverse facts pertaining to the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) that Simply Good Foods had lost key managerial personnel following the acquisition of OWYN necessary for the successful integration of the acquired OWYN assets; (2) that Simply Good Foods had materially increased its general and administrative spending to compensate for the loss of key managerial personnel; (3) the addition of a new pea protein supplier for OWYN prior to the acquisition had created significant product quality issues which had negatively impacted the product; (4) Simply Good Foods had engaged in promotional activities for OWYN products above its historical practices, eroding margins; (5) that, in order to stem the margin erosion, Simply Good Foods had cut brand support and marketing, further depressing product sales; (6) as a result of the above, the OWYN acquisition had largely failed to achieve its key strategic goals, the integration of OWYN had run into severe operational and execution problems, and the business and operational results for the OWYN segment had been materially negatively impacted, undermining the acquisitions economic rationale; and (7) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

What Can You Do Now? If you purchased The Simply Good Foods Company (NASDAQ: SMPL) shares before February 24, 2024, and still hold shares today, you are encouraged to visit https://grabarlaw.com/the-latest/smpl-shareholder-investigation/, contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085. You can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever. Alternatively, if you purchased shares between October 24, 2024 and April 8, 2026, inclusive, you can participate in the class action.

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Grabar Law Office is investigating potential claims on behalf of The Simply Good Foods Company ("Simply Good Foods" or the "Company") concerning alleged misconduct relating to the Company's $280 million acquisition and integration of Only What You Need, Inc. ("OWYN").

If you purchased or otherwise acquired Simply Good Foods common stock before October 24, 2024 and continue to hold shares, you can seek to protect the interests of the Company.

What Is the Simply Good Foods Investigation About?

On August 14, 2026, a securities class action was filed against The Simply Good Foods Company and certain of its current and former senior executives in the United States District Court for the Southern District of New York.

The complaint alleges that investors were misled regarding the integration and performance of OWYN, a plant-based ready-to-drink protein shake company that Simply Good Foods acquired for approximately $280 million in June 2024.

According to the complaint, Simply Good Foods publicly represented that the OWYN integration was "progressing as planned," "progressing well," and later "largely completed," while expressing confidence in OWYN's growth prospects and the Company's ability to achieve the anticipated benefits of the acquisition.

The complaint alleges, however, that significant problems had developed in connection with the acquisition and integration of OWYN that were not adequately disclosed to investors.

Alleged Problems With the OWYN Acquisition and Integration

The securities complaint alleges, among other things, that:

• Simply Good Foods lost key managerial personnel following the OWYN acquisition, allegedly impairing its ability to successfully integrate the business;
• the Company materially increased general and administrative spending in response to the loss of personnel, allegedly resulting in an inefficient organizational structure and a lack of cohesive strategic priorities for OWYN;
• a change involving a pea-protein supplier created product-quality problems, allegedly affecting the taste, texture and shelf life of certain OWYN products and contributing to negative consumer reviews, weaker sales and the loss of distributor relationships;
• the Company allegedly used increased discounts and promotional activity in an attempt to increase OWYN sales, putting pressure on margins without producing the anticipated turnaround;
• Simply Good Foods allegedly reduced brand support and marketing spending, further affecting OWYN's performance; and
• as a result, the complaint alleges that the OWYN integration suffered significant operational and execution problems and failed to achieve important strategic objectives.

What Did Simply Good Foods Tell Investors?

The complaint identifies a series of statements beginning on October 24, 2024 concerning the performance and integration of OWYN.

Among other things, then-Chief Executive Officer Geoff Tanner allegedly told investors that the OWYN integration was "progressing as planned" and expressed confidence that the Company could successfully integrate OWYN and deliver on the acquisition model.

During subsequent earnings calls, management continued to express confidence in OWYN. In April 2025, Tanner reportedly stated that the integration was "progressing well." In July 2025, he stated that the integration work was "nearly complete" and expressed confidence that OWYN would contribute to the Company's growth for years to come.

The complaint alleges that these and related statements were materially false or misleading because investors had not been told about significant personnel, organizational, product-quality, marketing and execution problems affecting the OWYN business.

October 2025: Product Quality Problems Are Disclosed

According to the complaint, on October 23, 2025, Simply Good Foods disclosed that OWYN's sales growth had slowed and revealed a previously undisclosed product-quality problem involving a pea-protein sourcing decision.

Management acknowledged that the sourcing decision resulted in taste and texture issues as the products aged, allegedly contributing to negative product ratings, reviews and weaker OWYN sales.

Simply Good Foods also issued fiscal 2026 net-sales guidance of negative 2% to positive 2%.

The complaint alleges that Simply Good Foods common stock fell from just under $25 per share on October 22, 2025 to $20.63 on October 23, 2025, a decline of more than 17%.

The complaint further alleges, however, that investors still had not been told the full extent of the problems associated with the OWYN integration.

April 2026: Simply Good Foods Announces Major OWYN Impairment

On April 9, 2026, Simply Good Foods announced additional deterioration in its business.

According to the complaint:

• OWYN quarterly sales had declined nearly 17% year-over-year;
• Simply Good Foods recorded an approximately $187 million impairment charge relating to OWYN brand intangible assets; and
• the Company reduced its fiscal 2026 net-sales outlook to approximately negative 7% to negative 10%.

Returning CEO Joseph Scalzo also acknowledged problems with the Company's prior strategy and execution.

With respect to OWYN specifically, Scalzo stated that the Company had not met its own expectations in integrating the brand, that important brand expertise had been lost, that marketplace execution had been poor, and that OWYN's performance had fallen well short of the Company's plans.

The complaint further alleges that product-quality problems were more extensive than investors had previously been led to believe and were expected to result in additional distribution losses.

Following these disclosures, the complaint alleges that Simply Good Foods shares declined from $14.41 on April 8, 2026 to $10.44 on April 10, 2026, a decline of more than 27%.

$200 Million in OWYN Impairments

On July 9, 2026, Simply Good Foods reported an additional approximately $13 million impairment of OWYN assets, bringing the Company's alleged cumulative OWYN impairments to approximately $200 million.

That figure represents approximately 70% of the $280 million purchase price, less than two years after Simply Good Foods completed the acquisition.

Management also acknowledged that the Company remained in the early stages of a turnaround and continued to face distribution losses resulting from poor marketplace performance.

Why Are Long-Term Simply Good Foods Shareholders Relevant?

A securities class action generally seeks recovery for investors who purchased shares during an allegedly affected trading period.

A shareholder derivative action is different.

Derivative litigation seeks to enforce rights belonging to the corporation itself and may address harm allegedly caused to the Company by officers or directors. Potential claims can involve issues such as the oversight and management of corporate affairs, the accuracy of disclosures concerning significant corporate transactions, and losses allegedly resulting from breaches of duties owed to the Company.

Grabar Law Office is therefore investigating whether the allegations concerning Simply Good Foods' acquisition and integration of OWYN may support claims on behalf of Simply Good Foods against certain of its officers and/or directors.

Accordingly, Grabar Law Office is particularly interested in speaking with shareholders who:

• acquired Simply Good Foods (NASDAQ: SMPL) shares before October 24, 2024; and
• continue to own Simply Good Foods shares today.

Long-term shareholders may have rights that are distinct from the claims being pursued on behalf of investors in the securities class action. The securities complaint defines its proposed class as investors who purchased Simply Good Foods common stock between October 24, 2024 and April 8, 2026, inclusive.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/310307

Source: Grabar Law Office