The equity of plant-based protein company Beyond Meat is confronting significant pressure from two distinct fronts. A major institutional investor has dramatically reduced its stake, while a critical deadline in a class action lawsuit approaches. These developments weigh on shares that have been trading below the $1.00 threshold for an extended period.
Class Action Lawsuit Sets March 24 Deadline
A federal class action lawsuit represents a key overhang for the company. Several law firms are notifying shareholders of the proceeding, which centers on corporate statements made between February 27, 2025, and November 11, 2025. The plaintiffs allege that Beyond Meat and certain executives issued materially misleading statements concerning the fair value assessment of long-lived assets, claiming these assets were overstated before a subsequent corrective write-down.
Investors have until March 24, 2026, to file petitions to be appointed as the “Lead Plaintiff” in the case. This date is now a near-term focal point for market observers.
Major Investor Jane Street Cuts Position by Over 85%
Adding to the headwinds is a substantial divestment by Jane Street Group, LLC. According to a 13G/A filing released earlier this month, the firm slashed its holdings by approximately 85.29%. The position was reduced by roughly 19.3 million shares, leaving Jane Street with about 3.33 million shares as of the reporting date of December 31, 2025. This remaining stake constitutes approximately 0.7% of the company.
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This retreat occurs as Beyond Meat’s stock has been unable to reclaim the psychologically important $1.00 level. Recently, shares have changed hands in the range of $0.67 to $0.72, firmly placing the equity in penny stock territory.
Financial Trigger: A $77.4 Million Impairment Charge
The legal action is closely tied to financial disclosures from late 2025. Beyond Meat’s third-quarter report, published in November, included a non-cash impairment charge of $77.4 million. This write-down primarily affected property, plant, and equipment and was a major contributor to the quarter’s operational loss, which exceeded $112 million.
The market reacted negatively to this news at the time, a sentiment compounded by a delay in filing the quarterly results. This impairment is central to the allegations in the class action suit.
Looking Ahead: Liquidity and Profitability Goals
Moving forward, investor attention is likely to center on several critical issues. Liquidity, the management of convertible notes, and the reiterated goal of achieving positive EBITDA by the end of 2026 will be key topics. The immediate milestone, however, remains the March 24, 2026 deadline in the ongoing litigation, which adds a layer of uncertainty for the stock in the near term.
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