The plant-based protein pioneer Beyond Meat finds itself navigating a perfect storm of legal and financial headwinds. Once a high-flying disruptor, the company now faces a growing wave of shareholder litigation alongside persistent operational losses, casting significant doubt on its near-term prospects.
Shareholder Class Action Gains Momentum
Legal pressure on the company’s leadership is intensifying. Multiple U.S. law firms, including Bronstein, Gewirtz & Grossman and the Rosen Law Firm, are actively recruiting investors to join a consolidated class action suit. The core allegation is severe: the company’s management is accused of disseminating materially misleading statements concerning the true valuation of certain long-term assets, potentially violating securities laws.
A critical deadline for affected shareholders is March 24, 2026. Investors who purchased Beyond Meat securities between February 27 and November 11, 2025, must come forward by this date to petition the court to serve as a lead plaintiff. The case is filed in a U.S. District Court in California. The involvement of several prominent firms significantly escalates the potential financial liability for a company already in a precarious cash position.
Operational and Financial Metrics Reflect Deepening Troubles
The legal accusations align starkly with recent disappointing financial results. Beyond Meat’s third-quarter 2025 report revealed a net loss of $110.7 million, a dramatic widening from the $26.6 million loss recorded in the same period the prior year.
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A primary driver of this loss was a substantial $77.4 million impairment charge on the very long-term assets now under scrutiny in the lawsuits. The company’s core business also showed weakness, with revenue declining by over 13% year-over-year to $70.2 million.
Equity Valuation in a Precipitous Decline
Investor confidence has eroded dramatically, reflected in the stock’s severe depreciation. For most of January 2026, the shares traded below the critical $1.00 threshold, firmly in penny stock territory. The stock closed at a mere $0.763 at the end of January, with the company’s total market capitalization standing at approximately $346 million—a shadow of its former valuation that now attracts speculative trading.
All eyes are now on the upcoming fourth-quarter and full-year 2025 earnings release, scheduled for February 25, 2026. These results are viewed as a crucial test for the company’s immediate viability, providing the market with an update on both its ongoing operational challenges and its ability to manage the escalating legal overhang.
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