Federman & Sherwood Investigates Flowers Foods, Inc. for Possible Violations of Federal Securities Laws
January 17 2017 - 5:34PM
Business Wire
The law firm of Federman & Sherwood has initiated an
investigation into Flowers Foods, Inc. (NYSE: FLO), its affiliates
and officers and directors, with respect to possible violations of
federal securities laws.
Flowers Foods, Inc. is a company that operates two business
segments: a direct-store-delivery segment and a warehouse delivery
segment and is headquartered in Thomasville, Georgia. Federman
& Sherwood’s investigation focuses on allegations of whether
the Company’s Board of Directors and/or its officers committed
mismanagement and breached their fiduciary duties in connection
with the Company’s labor practices. On August 10, 2016, Flowers
filed a Form 8-K with the SEC stating that "[o]n the afternoon of
August 9, 2016, the U.S. Department of Labor (the 'Department')
notified Flowers Foods, Inc. that it has been scheduled for a
compliance review under the Fair Labor Standards Act."
That same day, The Wall Street Journal ("WSJ") published an
article concerning the compliance review, stating that the Company
"faces lawsuits in various states brought by delivery drivers who
allege the company violated the FLSA by misclassifying them as
independent contractors, causing them to miss out on overtime pay,
benefits and other compensation given to employees." Additionally,
the WSJ article quoted an analyst with Pivotal Research Group who
stated that "[i]f the Labor Department ultimately finds Flowers in
violation of the FLSA, the company's potential liability could top
$1 billion in 'back wages, penalties, fines, health care and so
on.'"
If you currently own Flowers Foods securities and have
information to assist in our investigation; or, have any questions
or concerns regarding this notice or presentation of your rights,
please contact our office. Federman & Sherwood has extensive
nationwide experience in representing investors in securities,
derivative and merger-related shareholder class actions, and has
been appointed as lead counsel in multiple complex cases.
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version on businesswire.com: http://www.businesswire.com/news/home/20170117006575/en/
Federman & SherwoodRobin Hester,
405-235-1560rkh@federmanlaw.com
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