NEW YORK, Feb. 23, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in BellRing Brands, Inc. (NYSE: BRBR) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between November 19, 2024 and August 4, 2025.
The convenient nutrition industry has experienced explosive growth in recent years, with ready-to-drink protein shakes expanding from a niche fitness product into a mainstream consumer category generating billions in annual revenue. BellRing captured a dominant share of this market through its Premier Protein brand, which accounts for approximately 85% of the company's total sales. However, the lawsuit alleges that the company's reported sales figures masked a critical vulnerability: retailers were stockpiling inventory rather than selling through to consumers at the rates management represented.
Click here to learn more about this case
You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
The Alleged Inventory Stockpiling Methodology
According to the lawsuit, BellRing's key retail customers accumulated excess inventory as a safeguard against product shortages that had previously constrained supply. The complaint alleges that management was aware retailers were hoarding product to protect against out-of-stock conditions but presented the resulting shipment volumes as evidence of genuine consumer demand growth.
How Stockpiling Allegedly Affected Reported Financials
The lawsuit contends that by recognizing revenue upon shipment to retailers rather than upon sale to end consumers, BellRing's reported sales figures were materially inflated by temporary inventory accumulation. When retailers eventually reduced their weeks of supply on hand, shipments dropped sharply, revealing the gap between reported growth and actual consumer demand.
Key Inventory Allegations for Shareholders
• Management allegedly knew key retailers were "hoarding inventory" to avoid out-of-stock conditions but attributed sales growth to "organic growth" and "demand drivers"
• Shipment dollar growth reportedly outpaced consumption dollar growth, a potential indicator of channel stuffing or inventory buildup
• Premier Protein RTD shake volume allegedly grew over 19% in fiscal year 2024, but the complaint asserts this growth was substantially attributable to retailer stocking rather than end-consumer pull-through
• When retailers reduced inventory levels beginning in the second quarter of fiscal 2025, the company allegedly disclosed for the first time that this destocking would create a "mid-single-digit headwind" to growth
• The CEO purportedly admitted after the fact that "we thought this could happen" regarding the destocking, suggesting prior awareness of the risk
The Competitive Landscape Factor
The complaint further alleges that management downplayed growing competitive threats in the ready-to-drink protein category. The lawsuit contends that management characterized the RTD market as having a "competitive moat" while simultaneously new entrants were gaining shelf space at major retail accounts.
"This case presents important questions about inventory disclosure obligations in the consumer packaged goods sector," said Joseph E. Levi, Esq., managing partner of Levi & Korsinsky, LLP. "We are committed to pursuing justice for investors who relied on the company's public statements about its sales practices."
ABOUT LEVI & KORSINSKY, LLP
Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report. Applications to serve as lead plaintiff must be filed by March 23, 2026.
Contact: Joseph E. Levi, Esq. | jlevi@levikorsinsky.com | (212) 363-7500
