BellRing Faces Securities Class Action in SDNY Over Alleged Misstatements on Demand

Overview

• The lawsuit, captioned Denha v. BellRing Brands, Inc., No. 1:26-cv-00575, was filed in the Southern District of New York and asserts claims under Sections 10(b) and 20(a) of the Exchange Act.
• Plaintiffs allege BellRing portrayed sales growth as driven by consumer demand when results were largely fueled by retailer stockpiling followed by destocking and share erosion as competition intensified.
• The class period runs from November 19, 2024 through August 4, 2025, covering two earnings updates that form the core of the claims.
• After disclosures on May 6, 2025 about retailers lowering weeks of supply, shares fell $14.88 (19%), and following a narrowed FY2025 sales outlook on August 4–5, 2025 tied to increased RTD protein competition, shares fell $17.46 (nearly 33%).
• Multiple shareholder firms, including Hagens Berman, Faruqi & Faruqi, Holzer & Holzer, Bernstein Liebhard, and Bragar Eagel & Squire, are soliciting investors and potential whistleblowers as the case proceeds at the pleading stage.