The litigation, Monroe County Employees' Retirement System v. The Simply Good Foods Company, claims that the company misled shareholders concerning its strategy during the $280 million acquisition of OWYN. While management initially reported that integration was proceeding as planned, the complaint alleges that the reality involved significant internal failures, including an exodus of key management and a transition to an inferior product supplier that compromised quality and brand loyalty.

These operational issues culminated in an April 2026 earnings report showing a 17% year-over-year sales decline for the OWYN brand and a sharp contraction in consumption across the company’s broader portfolio. Following the disclosure that strategic missteps had weakened performance, the company's stock price dropped more than 27% over two days. Investors seeking to serve as lead plaintiff in the class action must file their applications by October 13, 2026.