ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2023
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Start ups
    • Funding
    • Appointments
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » World News

Kraft Heinz lawsuit targets 3G stock transfer, writedown, SEC probe

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App

Kraft Heinz Co faces a new lawsuit questioning why controlling shareholder 3G Capital transferred $1.23 billion of stock six months before the processed foods company stunned investors with a huge writedown and other bad news.

The proposed class-action lawsuit made public on Wednesday is among the first accusing Kraft Heinz, whose other controlling shareholder is Warren Buffett`s Berkshire Hathaway Inc, of defrauding shareholders about its business prospects.

Kraft Heinz`s share price sank 27.5 percent on Feb. 22 after the company took a $15.4 billion writedown on its Kraft and Oscar Mayer brands and Canadian assets, as consumers shifted to healthier and fresher alternatives or private-label products.

The company, headquartered in both Chicago and Pittsburgh, also slashed its dividend and announced a U.S. Securities and Exchange Commission accounting probe. Kraft Heinz`s stock plunge erased more than $16 billion of market value.

In his damages complaint, shareholder Steve Walling accused Kraft Heinz, Chief Executive Bernardo Hees, 3G and others of concealing damage to Kraft Heinz`s iconic brands and internal controls, including from 3G`s signature belt-tightening.

Walling also said the defendants had been "motivated" to engage in improper conduct to allow 3G to "sell" $1.23 billion of stock last August at artificially inflated prices. The complaint was filed in the federal court in Pittsburgh.

In an Aug. 7 regulatory filing, 3G said an affiliate had transferred 20.63 million Kraft Heinz shares worth $59.83 each to an entity called HK3 18 LP.

The Brazilian private equity firm said none of the shares sold related to 3G partners` original Kraft Heinz stake.

Hees told Reuters in a Sept. 7, 2018 interview that the transfer was made on behalf of institutional investors that had a "window to liquidity" and were exiting a 3G fund.

"It`s not 3G, as we know 3G," he said. "We are very optimistic about the profile of what the investment can be for the long run."

Kraft Heinz and 3G did not immediately respond on Thursday to requests for comment. Robbins Geller Rudman & Dowd, a law firm representing Walling, did not respond to similar requests.

Berkshire and Buffett are not defendants. Buffett told CNBC on Monday the market reacted "probably quite properly" to Kraft Heinz`s news.

Shareholder lawsuits are common after unexpected bad news hurts a company`s stock price. They are often combined into a single lawsuit near where the company is based.

The case is Walling v Kraft Heinz Co et al, U.S. District Court, Western District of Pennsylvania, No. 19-00214.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
Updated: Thu, Feb 28, 2019
11:44 pm
Reuters
RELATED NEWS
Budget 2023: Why budget's printing was shifted to North Block from Rashtrapati Bhavan? Budget 2023: Why budget's printing was shifted to North Block from Rashtrapati Bhavan?
Govt to sell 30 lakh tonnes of wheat in open market till March to control prices of wheat, atta Govt to sell 30 lakh tonnes of wheat in open market till March to control prices of wheat, atta
India’s economic fortunes critical for global growth, its rise being welcomed by world: Kumar Mangalam Birla India’s economic fortunes critical for global growth, its rise being welcomed by world: Kumar Mangalam Birla
Budget 2023: Boosting India's manufacturing sector - Experts shed light Budget 2023: Boosting India's manufacturing sector - Experts shed light
Budget 2023 EXCLUSIVE: Govt may extend 15% corporate tax levy deadline beyond 31 March 2024 Budget 2023 EXCLUSIVE: Govt may extend 15% corporate tax levy deadline beyond 31 March 2024

LATEST NEWS

Pathaan box office collection: Shah Rukh Khan-starrer breaks all records — Check collection figures of SRK's last 5 films

Central Railway Recruitment 2023: Apply for 50 Junior Technical Associate posts - last date, vacancy, age limit, selection process, fees | Know full details here

Two Indian Air Force fighter planes - Sukhoi 30 and Mirage 2000 - crash in MP's Morena

Hindenburg Impact: Bankers on Adani Enterprises’ Rs 20,000 cr FPO consider delay, price cut after rout - Report

Adani Group rules out changes in price, dates of FPO; company confident offer share sales going through

Adani Group-Hindenburg: What options Adani Group have? Anil Singhvi decodes

Adani Group-Hindenburg saga: MSCI seeks feedback on Adani Group over Hindenburg report

Need to help India find alternatives to Russian military equipment: Biden admin tells lawmakers

ILT20 Achieves New Milestone: Clocks over 10-crore reach and 2.8 billion minutes across ZEE’s 10 linear channels in the first 9 LIVE matches

Adani Enterprises FPO subscribed 1% on opening day as shares plummet over 18%

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. India Dot Com Private Limited. All Rights Reserved.
LIVE TV