Campbell Soup Hid Fresh Division’s Rotten Prospects, Suit Says (1)

Campbell Soup Co. faces a would-be class action alleging the packaged food firm misled shareholders about the profitability of its fresh-foods division.

Company executives told investors its struggling Campbell Fresh division would become profitable again in fiscal year 2018, but knew the downward trend would probably continue, according to a Nov. 27 complaint. Another Campbell investor made similar allegations in a Nov. 5 suit.

Campbell Fresh encompasses the Bolthouse Farms and Garden Fresh Gourmet brands. In the first quarter of fiscal 2017, the division reported about $1 million in operating income, according to the complaints. Campbell Fresh reported ...