Kraft Heinz Co faces a new lawsuit questioning why controlling shareholder 3G Ca...
- 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.
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. 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.
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. Berkshire and Buffett are not defendants. Buffett told CNBC on Monday the market reacted “probably quite properly” to Kraft Heinz’s news.
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