A Saskatchewan pension plan has a sour taste in its mouth after a US federal court judge dismissed a class action suit against fake food maker Beyond Meat.The US District Court for the Central District of California on Monday dismissed a suit brought by the Saskatchewan Healthcare Employees Pension Plan in 2023 for violations of the Securities Exchange Act. The proposed class action says Beyond Meat’s leaders made statements misrepresenting the success of product tests with fast food chains — including McDonald’s, Kentucky Fried Chicken, Pizza Hut, and Taco Bell — knowing the company couldn’t meet the demands of the fast food companies..That in turn caused the company’s share price to tank, resulting in “substantial losses” to investors, according to the statement of claim.“Beyond Meat was unable to manufacture its meat substitutes at scale to the specifications of its key customers, which it calls ‘partners’,” it said.The suit alleged that senior management knew the company didn’t have the production capacity to meet key contracts or product specifications required by the fast food giants but continued to promote them anyway.The company, which once had a market capitalization of more than USD$10 billion, has lost about 91% of its value since going public in 2020.On Monday they lost another 8% after the company reported disappointing second quarter financial results. Although it managed to stem revenue declines through massive cuts to its workforce and a restructuring of its debt.It has also discontinued money-losing products like Beyond Jerky.But analysts said the company continues to face weak customer demand especially in the face of a looming recession. The restaurant sector, and fast food chains in particular are seeing sales declines as a result of inflation.The company also has another $1.14 billion of debt coming due by 2027.“As much as I'd like to believe Beyond Meat is on firmer footing, however, it's difficult to not worry about this company's future in the wake of a potential US recession,” wrote Seeeking Alpha analyst Gary Alexander. “All in all, there's substantially more risk than opportunity in Beyond Meat, and with demand for plant-based meats shrinking, it's difficult to envision an acquirer stepping in to save Beyond Meat either. Continue to steer clear here.”.This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
A Saskatchewan pension plan has a sour taste in its mouth after a US federal court judge dismissed a class action suit against fake food maker Beyond Meat.The US District Court for the Central District of California on Monday dismissed a suit brought by the Saskatchewan Healthcare Employees Pension Plan in 2023 for violations of the Securities Exchange Act. The proposed class action says Beyond Meat’s leaders made statements misrepresenting the success of product tests with fast food chains — including McDonald’s, Kentucky Fried Chicken, Pizza Hut, and Taco Bell — knowing the company couldn’t meet the demands of the fast food companies..That in turn caused the company’s share price to tank, resulting in “substantial losses” to investors, according to the statement of claim.“Beyond Meat was unable to manufacture its meat substitutes at scale to the specifications of its key customers, which it calls ‘partners’,” it said.The suit alleged that senior management knew the company didn’t have the production capacity to meet key contracts or product specifications required by the fast food giants but continued to promote them anyway.The company, which once had a market capitalization of more than USD$10 billion, has lost about 91% of its value since going public in 2020.On Monday they lost another 8% after the company reported disappointing second quarter financial results. Although it managed to stem revenue declines through massive cuts to its workforce and a restructuring of its debt.It has also discontinued money-losing products like Beyond Jerky.But analysts said the company continues to face weak customer demand especially in the face of a looming recession. The restaurant sector, and fast food chains in particular are seeing sales declines as a result of inflation.The company also has another $1.14 billion of debt coming due by 2027.“As much as I'd like to believe Beyond Meat is on firmer footing, however, it's difficult to not worry about this company's future in the wake of a potential US recession,” wrote Seeeking Alpha analyst Gary Alexander. “All in all, there's substantially more risk than opportunity in Beyond Meat, and with demand for plant-based meats shrinking, it's difficult to envision an acquirer stepping in to save Beyond Meat either. Continue to steer clear here.”.This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
