LEVI & KORSINSKY, LLP: CEO AND CFO NAMED AS CONTROL PERSON DEFENDANTS IN BELLRING BRANDS SECURITIES ACTION

The Named Individual Defendants

The pleading asserts that Darcy Horn Davenport, who serves as CEO, and Paul Rode, who serves as CFO, are liable as controlling persons under Section 20(a) of the Securities Exchange Act. As averred, both executives possessed the power and authority to control the content of the company's public disclosures, including SEC filings, press releases, and earnings call statements.

Section 20(a) Control Person Framework

The complaint charges that the individual defendants, by virtue of their senior positions, had the ability to influence and control the company's decision-making, including the dissemination of the allegedly false and misleading statements at issue. The pleading asserts they were provided with copies of reports and press releases prior to issuance and had the opportunity to prevent their dissemination or cause corrections.

Alleged Control Person Liability

• The CEO allegedly made statements attributing sales growth to "organic growth" and "demand drivers" while knowing retailers were stockpiling inventory
• The CFO allegedly reported shipment data that outpaced consumption without adequately disclosing the inventory accumulation driving the gap
• Both executives allegedly signed SEC filings containing the challenged misrepresentations
• The complaint charges that Premier Protein constitutes approximately 85% of revenue, making demand and competitive conditions core operational knowledge
• The CEO's post-disclosure admission that "we thought this could happen" regarding destocking allegedly supports an inference of scienter

Sarbanes-Oxley Certification Obligations

As averred, the individual defendants certified the company's quarterly and annual reports pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act, attesting that the filings fairly presented the company's financial condition and results of operations in all material respects.

"Corporate officers have a duty to ensure their companies' public statements are accurate and complete," noted Joseph E. Levi, Esq. "We are examining the individual defendants' roles in the alleged misconduct."

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Contact: Joseph E. Levi, Esq. | jlevi@levikorsinsky.com | (212) 363-7500

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SOURCE Levi & Korsinsky, LLP