Shareholder rights law firm Johnson Fistel, LLP is investigating potential violations of securities laws by Lifecore Biomedical, Inc. (NASDAQ: LFCR) following the company’s restatement of financial statements, which led to a significant stock drop.

The investigation focuses on whether Lifecore or its executives failed to disclose crucial information to investors, resulting in financial losses. Lifecore’s Annual Report on Form 10-K/A for the year ended May 29, 2022, revealed restatements of unaudited consolidated financial statements for various periods. These restatements corrected errors involving the calculation of capitalized interest, valuation of inventories, and adjustments related to previously divested businesses.

As a consequence of these disclosures, Lifecore’s stock price plummeted by 30% on March 20, 2024. Shareholders who have purchased Lifecore securities and experienced losses are encouraged to join the investigation to potentially make claims and recover under federal securities laws.

“If you believe you may have a potential claim against Lifecore and would like to participate in the investigation or learn more about your legal rights and options, please contact Johnson Fistel, LLP at (619) 814-4471 or visit their website,” the law firm said in a statement.

Individuals with nonpublic information about Lifecore are also urged to consider assisting the investigation or utilizing the SEC Whistleblower program. Under the SEC program, whistleblowers who provide original information may, under certain circumstances, receive rewards totaling up to thirty percent of any successful recovery made by the SEC.

Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, including foreign investors who have purchased on US exchanges.