Lamb Weston faces lawsuit over undisclosed ERP software issues causing $135M sales loss

Lamb Weston Holdings is facing a securities class action lawsuit for failing to disclose significant problems with its Enterprise Resource Planning (ERP) software. The company revealed that the ERP rollout caused a $135 million sales loss in Q3 fiscal 2024 and forced a $330 million reduction in annual sales guidance. Following this disclosure, Lamb Weston's stock price dropped sharply. The court has allowed the lawsuit to proceed, and shareholders who owned stock before July 25, 2023, may have legal rights to pursue damages.