Beyond Meat has settled a lawsuit with shareholders that was sparked by other lawsuits, still ongoing, with a former contract manufacturer.
Beyond, one of the two biggest pure-play meat analogue processors, has been embroiled in a legal dispute with Don Lee Farms, its first major co-manufacturer. Don Lee charged in a 2017 lawsuit that Beyond Meat improperly broke its five-year contract by citing spurious health and safety concerns, that Beyond stole Don Lee’s trade secrets and that Beyond had altered safety reports to make it appear that Don Lee had been negligent. Beyond countersued, and a trial is scheduled for next month.
After the suits were filed, Beyond Meat shareholders sued the company, saying that Beyond Meat had breached its fiduciary duty by letting the situation with Don Lee deteriorate. In the settlement, Beyond Meat agrees to pay $515,000 in attorneys’ fees and add a committee to its board of directors to assess legal and other risks that face the company, while not admitting any liability or wrongdoing.
