Beyond Meat Inc. faces mounting pressure as a new class action lawsuit alleges securities fraud, adding to the plant-based protein pioneer’s significant operational and market challenges. Shareholders filed the suit in a Los Angeles federal court, claiming the company misled investors by concealing the necessity for a substantial asset impairment charge.
Lawsuit Alleges Deception Over Asset Values
Filed on January 24, 2026, the legal action centers on accusations that Beyond Meat’s public communications throughout much of 2025 were misleading. While management highlighted cost-reduction efforts and margin improvements, the complaint asserts they failed to disclose that long-term assets—including production facilities, machinery, and leasehold improvements—required a significant write-down.
The situation came to a head in the autumn. After initially delaying its financial report, Beyond Meat ultimately recorded a $77.4 million impairment charge. This contributed to a substantial third-quarter net loss of $112.3 million. The disclosure triggered a severe stock price decline, with shares plummeting from $2.84 on October 24, 2025—when the company first hinted at a potential write-down—to $1.12 by November 12, 2025.
Financial Performance Reflects Deepening Crisis
The quarterly results released on November 10, 2025, underscored persistent weakness. Revenue fell 13.3% year-over-year to $70.2 million. Gross profit contracted sharply to $7.2 million, down from $14.3 million in the prior-year period, driving the gross margin down to 10.3% from 17.7%.
The company has yet to report an annual profit since its 2019 initial public offering. Total revenue is on track for a fourth consecutive annual decline.
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Key Financial Data:
* Q3 2025 Revenue: $70.2 million (down 13.3% year-over-year)
* Q3 2025 Net Loss: $112.3 million
* Impairment Charge: $77.4 million
* Q3 2025 Gross Margin: 10.3% (prior year: 17.7%)
* Market Capitalization: Approximately $346 million (as of January 30, 2026)
New Product Launch Amid Turmoil
In a strategic pivot, Beyond Meat attempted to shift narrative in mid-January 2026 with its first major expansion beyond meat alternatives. On January 15, the company launched “Beyond Immerse,” a plant-based protein drink.
The beverage, formulated with pea protein and tapioca fiber, comes in three flavors: Peach Mango, Lemon Lime, and Orange Tangerine. Consumers can choose between two versions offering either 10 grams of protein and 60 calories, or 20 grams of protein and 100 calories. Currently, Beyond Immerse is available exclusively through the company’s direct-to-consumer platform, Beyond Test Kitchen.
Extreme Volatility Defines Share Performance
Beyond Meat’s stock experienced wild swings in late 2025. A social media-driven rally briefly propelled the share price above $7 in October before it collapsed. The 52-week range of $0.50 to $7.69 highlights the extreme volatility. The outcome of the newly filed class action lawsuit now presents a potential additional overhang for the embattled company.
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