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The J.M. Smucker Company (SJM) Faces Investor Scrutiny After Announcing The Second Hostess-Related Impairments In About 3 Months - Hagens Berman

1. SJM shares fell 15% after Q4 2025 results disappointment. 2. Hagens Berman opens investigation into potential securities law violations. 3. SJM reported significant impairment charges following the Hostess acquisition. 4. Dismal sales and operational performance raise investor concerns. 5. Substantial shareholder value, around $1.8 billion, wiped out.

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FAQ

Why Very Bearish?

The 15% drop in SJM's share price signals severe investor concern, reminiscent of prior significant losses from M&A failures, which historically tend to diminish investor confidence.

How important is it?

The significant share price drop and legal investigation suggest high impact on investor sentiment and market perception, warranting close monitoring by stakeholders.

Why Long Term?

The ongoing investigation and sustained operational underperformance could have long-lasting effects on SJM's reputation and sales, as seen with past M&A-related issues leading to a prolonged recovery.

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HOSTKRAPOTPEP
, /PRNewswire/ -- On June 10, 2025, investors in The J.M. Smucker Company (NYSE: SJM) saw the price of their shares decline over 15% after the company announced disappointing Q4 2025 financial results. This announcement has prompted national shareholders rights firm Hagens Berman to open an investigation into whether SJM may have violated the securities laws concerning the propriety of its statements about the benefits of the Hostess Brands acquisition. The firm urges SJM investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys. Visit: www.hbsslaw.com/investor-fraud/sjmContact the Firm Now: [email protected]                                      844-916-0895 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. "We're investigating whether SJM may have slow-rolled the goodwill and trademark write-downs," said Reed Kathrein, the Hagens Berman partner leading the investigation. If you invested in SJM and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now » If you'd like more information and answers to frequently asked questions about the SJM investigation, read more » Whistleblowers: Persons with non-public information regarding SJM should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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, call Reed Kathrein at 844-916-0895 or email [email protected]. About Hagens BermanHagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.  SOURCE Hagens Berman Sobol Shapiro LLP WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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