The J. M. Smucker Company (SJM) Investigation

The Hostess Brands Acquisition:

On November 7, 2023, SJM announced the closing of the transaction to acquire Hostess Brands for about $5.5 billion, $2.4 billion of which was recorded as goodwill in SJM’s Sweet Baked Snacks segment.

The transaction included the Hostess® sweet baked snacks brands, including Hostess Donettes, Twinkies, CupCakes, DingDongs, Zingers, CoffeeCakes, HoHos, Mini Muffins and Fruit Pies and the Voortman cookie brand,  along with manufacturing facilities in Emporia, Kansas; Burlington, Ontario; Chicago, Illinois; Columbus, Georgia; Indianapolis, Indiana and Arkadelphia, Arkansas and a distribution facility in Edgerton, Kansas.

At the time of closing, SJM assured investors that “the synergy of our businesses creates a compelling platform to drive sustainable growth.” After the acquisition, the Hostess Brands operations have been included in SJM’s Sweet Baked Snacks segment.

SJM Investigation:

On February 27, 2025, SJM announced dismal Q3 2025 results, including in part a comparable net sales decrease of 8% in Sweet Baked Snacks, a $794 million impairment charge related to the goodwill of the Sweet Baked Snacks segment, a $208 impairment charge to the Hostess Brand trademark, and a $268 million loss on the disposal of the Voortman business.

In contrast to assurances about synergies driving sustainable growth, the company also said that, as a result of its integration of Hostess, it forecasted declining sales in the Sweet Baked Snacks segment.

During the earnings call that day, a JPMorgan analyst noted the charges amounted to about 20% of the Hostess purchase price and questioned management about its comfort with the “general M&A process that Smucker adheres to[.]”

Then, on June 10, 2025, SJM delivered bleak Q4 2025 results, including in part a comparable net sales decrease of 14% in Sweet Baked Snacks, an additional $867 million impairment charge related to the goodwill of the Sweet Baked Snacks segment and an additional $113 million impairment of the Hostess Brand trademark. The impairment charges amounted to an additional 18% of the Hostess acquisition price.

Again, in contrast to assurances about synergies driving sustainable growth, the company said its updated 2026 financial plan reflects decreased net sales in the Sweet Baked Snacks segment, noting “the sustained underperformance of the sweet baked goods since acquisition, led to a reduction of the forecasted growth rate for the Sweet Baked Snacks reporting unit.”

This news sent the price of SJM shares down $17.44 (-15%) on June 10, 2025, wiping out about $1.8 billion of shareholder value.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the SJM investigation about?

We are investigating whether SJM may have slow-rolled the goodwill and trademark write-downs.

WHAT SHOULD I DO?

I worked at SJM. What should I do?

If you were an employee of SJM, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in SJM, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any SJM investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.