The information contained on this web page is only a summary of information presented in more detail in the Notice of (I) Pendency of Class Action, Certification of Settlement Class, and Proposed Settlement; (II) Settlement Fairness Hearing; and (III) Motion for an Award of Attorneys’ Fees and Reimbursement of Litigation Expenses (the “Notice”), which you can access by clicking here.  Since this website is just a summary, you should review the Notice for additional information.

If you are a Settlement Class Member, your legal rights will be affected by this Settlement whether you act or do not act.

Please read the Notice carefully.

IF YOU PURCHASED OR OTHERWISE ACQUIRED FLOWERS FOODS COMMON STOCK FROM FEBRUARY 7, 2013 THROUGH AUGUST 10, 2016, INCLUSIVE (THE “SETTLEMENT CLASS PERIOD”) AND WERE DAMAGED THEREBY, YOU MAY BE ENTITLED TO A PAYMENT FROM A CLASS ACTION SETTLEMENT.

The Settlement Hearing

The Court held a final settlement hearing on December 11, 2019 and approved the Settlement and proposed Plan of Allocation and the motion requesting attorneys' fees and expenses. Copies of the orders can be accessed on the Court Documents section.

What is this case about?

Flowers Foods is a producer and marketer of packaged bakery foods in the United States.

On January 12, 2017, Lead Plaintiff filed and served his Consolidated Class Action Complaint (the “Complaint”) asserting claims against all Defendants under Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, and against the Individual Defendants under Section 20(a) of the Exchange Act.  Among other things, the Complaint alleged that Defendants failed to disclose that its classification of distributors as independent contractors was knowingly improper, and thus misrepresented the true state of the Company’s business, operations, and risks it faced during the Settlement Class Period. The Complaint alleges that, as a result of the alleged misrepresentations and omissions, the price of Flowers Foods’ common stock was artificially inflated during the Settlement Class period, and declined when the truth was revealed.

Defendants have denied the claims asserted against them in the Action and deny having engaged in any wrongdoing or violation of law of any kind whatsoever.  Defendants have agreed to the Settlement solely to eliminate the burden and expense of continued litigation. 

On April 29, 2019 Lead Counsel and Defendants’ Counsel met with Mr. Robert A. Meyer, Esq. of JAMS, who presided over a full-day mediation session between the Parties in New York.  The session ended without an agreement to settle.   Following the mediation, however, Mr. Meyer conducted further discussions with the Parties, and ultimately made a settlement proposal for the Parties’ consideration which both sides accepted.   The Parties thereafter memorialized the settlement in a confidential term sheet (the “Term Sheet”) executed on May 9, 2019.

On August 7, 2019, the Court preliminarily approved the Settlement, authorized this Notice to be disseminated to potential Settlement Class Members, and scheduled the Settlement Hearing to consider whether to grant final approval to the Settlement.

The Settlement Benefits

At this time, it is not possible to make any determination as to how much any individual Settlement Class member may receive from the Settlement.

Pursuant to the Settlement, Defendants have agreed to a twenty-one million ($21,000,000) Settlement. If the Settlement is approved by the Court, the Net Settlement Fund (the Settlement Fund less taxes and expenses) will be distributed to Settlement Class Members who submit valid Claim Forms in accordance with the proposed Plan of Allocation.

The Net Settlement Fund will not be distributed unless and until the Court has approved the Settlement and a Plan of Allocation, and the time for any petition for rehearing, appeal or review has expired.

Further Information:

This website and the Notice summarizes the Settlement.  For more details regarding this Settlement please reference the Settlement Agreement, or other documents filed in the case under the “Court Documents” link on the left.  You may also contact the Claims Administrator or Lead Counsel for further information regarding this Settlement:

Claims Administrator: 

Flowers Foods Class Action Litigation

c/o A.B. Data, Ltd.

PO Box 173079

Milwaukee, WI  53217

877-227-6101

info@FlowersSecuritiesLitigation.com

As a Class Member, you will be represented by Lead Counsel:

Ex Kano S. Sams II Esq.

GLANCY PRONGAY & MURRAY LLP

1925 Century Park East, Suite 2100

Los Angeles, CA 90067

(310) 201-9150

            &

Michael Fistel, Jr., Esq.

Johnson Fistel, LLP

Murray House

40 Powder Springs Street

Marietta, GA 30064

(470) 632-6000

If you have questions, you may call the Flowers Foods Securities Litigation Help Line at 877-227-6101 or email info@FlowersSecuritiesLitigation.com.