Humacyte Fiduciary Probe
Halper Sadeh LLC investigates Humacyte, Inc. officers for potential breach of fiduciary duties to shareholders
Anonymous
Investor rights law firm Halper Sadeh LLC announced on June 5, 2026, that it is investigating whether officers and directors of Lamb Weston Holdings, Inc. (NYSE: LW) breached their fiduciary duties to shareholders PR Newswire. The probe follows a catastrophic ERP software rollout that wiped out $2.83 billion in market value in a single day and cost the company $135 million in lost sales Barchart.
Lamb Weston's stock crashed roughly 19.4% on April 5, 2024 — a single-day loss of $19.59 per share. The company was forced to slash its full-year sales guidance by $330 million. Shareholders who still hold LW stock may now seek corporate governance reforms or other relief through the firm at no out-of-pocket cost Barchart.
A Botched Software Rollout Cost Lamb Weston Billions
In November 2023, Lamb Weston began moving its North American operations onto a new SAP-based Enterprise Resource Planning system — essentially the software backbone that tracks inventory and processes orders. The transition went badly. By April 2024, the company reported it could not see its own inventory properly. That blind spot caused $135 million in lost sales in a single quarter Barchart.
CEO Tom Werner admitted the company was "disappointed with the magnitude of the ERP transition's effect." Analysts at TD Cowen said the outlook was simply "not good." The board had been warned years earlier that the company was running on "antiquated" IT systems. Critics say the disaster was the result of "decades of under-spending in IT" — a known risk the board failed to address Barchart.
Pension Funds Hit as Lawsuit Moves Forward in Court
A securities class action lawsuit was filed in June 2024 in the U.S. District Court for the District of Idaho (Case No. 24-cv-282). The lead plaintiff is the Cleveland Bakers and Teamsters Pension Fund — union workers whose retirement savings took a direct hit. The class period runs from July 25, 2023, through April 3, 2024 Barchart.
The case survived a major legal test. In May 2026, a federal judge granted only part of the defendants' motion to dismiss, allowing the core claims to move forward. That ruling gave Halper Sadeh's broader fiduciary duty investigation a stronger legal foundation Barchart.
What "Fiduciary Duty" Means and Why It Matters Here
Under Delaware law, where most major U.S. companies are incorporated, directors and officers must act with a "duty of care" and a "duty of loyalty" toward shareholders. That means they cannot ignore serious risks or mislead the public to keep the stock price high. Lawyers call this a "Caremark" duty — the obligation to actually oversee what is happening inside the company Barchart.
In Lamb Weston's case, investigators are asking a simple question: did the board know the ERP rollout was failing and say nothing? Law firms argue management "soft-pedaled" the scale of the problem. The company's defense is that the ERP chaos was a temporary glitch that has since been fixed, and that long-term demand for frozen potatoes remains strong Barchart.
What Shareholders Can Seek and How to Get It
Halper Sadeh LLC is handling the Lamb Weston matter on a contingent fee basis. That means shareholders pay nothing out of pocket — the firm only collects if it wins. Current LW stockholders may be able to seek corporate governance reforms, force the company to return funds, or receive a court-approved financial award PR Newswire Barchart.
Possible reforms from cases like this include appointing independent board directors with specific IT oversight experience — to prevent a repeat failure. Institutional investors such as pension funds are typically best positioned to lead these efforts, given their large ownership stakes and long-term exposure to the stock Barchart.
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