Channel-Stuffing Claims Lack Showing Of Necessary Securities Fraud Elements

Mealey's (November 9, 2022, 2:11 PM EST) -- NEW YORK — A federal magistrate judge recommended that remaining federal securities law claims brought by lead plaintiffs in a securities class action against a manufacturer of natural food and personal care products and certain of its current and former senior executives on claims that the defendants engaged in an illegal “channel-stuffing” scheme by sending an excessive amount of product to the company’s distributors to conceal a drop in demand for its products be dismissed because the lead plaintiffs have failed to sufficiently plead any actionable misstatements or omissions or scienter....