VITL Investor Alert: Vital Farms, Inc. Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Company Allegedly Misled Institutional Holders: Levi & Korsinsky

Notice to Pension Funds, Asset Managers, and Fiduciaries

NEW YORK, May 11, 2026 (GLOBE NEWSWIRE) -- Institutional investors holding positions in Vital Farms, Inc. (NASDAQ: VITL) during the period May 8, 2025 through February 26, 2026 may wish to evaluate lead plaintiff opportunities in a pending securities class action. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

Shares declined $2.68 per share, or 10.8%, closing at $22.11 on February 26, 2026, after the Company disclosed that ERP implementation failures caused shipment disruptions and lost retail shelf space. The window to apply for lead plaintiff closes on May 26, 2026.

Fiduciary Obligations and Recovery Options

Pension funds, mutual funds, and asset managers with fiduciary duties to beneficiaries should assess whether participation in this action is warranted. Under ERISA and common law fiduciary standards, institutional holders who suffered losses during the Class Period have an obligation to evaluate all reasonable avenues for recovery on behalf of their beneficiaries. Key considerations include:

Institutional holders that purchased VITL shares between May 8, 2025 and February 26, 2026 at prices that the lawsuit contends were artificially inflated may be entitled to compensation
Lead plaintiff appointment grants direct oversight of litigation strategy, settlement negotiations, and counsel selection
Serving as lead plaintiff does not increase an institution's financial exposure or require out-of-pocket costs
Courts under the PSLRA typically appoint the movant with the largest financial interest in the relief sought
Institutional participation strengthens class representation and can improve recovery outcomes for all class members
Absent class members retain rights to participate in any recovery without filing a lead plaintiff motion

Portfolio Impact Assessment

The action asserts that Vital Farms and certain officers made materially false statements regarding the Company's enterprise resource planning system transition. The pleading asserts that management represented the ERP rollout was proceeding smoothly and would not affect full-year guidance, even after production slowdowns had already begun. When fiscal year 2025 revenue came in at $759.4 million versus guidance of at least $775 million, and earnings per share of $0.35 missed the $0.39 consensus, the market repriced VITL shares downward.

For funds that held concentrated positions or added to VITL during the Class Period based on raised revenue guidance, the resulting decline may represent a material portfolio impact warranting fiduciary review.

Case Summary

The securities action, filed in the United States District Court for the Western District of Texas, Austin Division, alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. As averred, the Company's public statements concealed that ERP startup issues caused order and fulfillment disruptions during the critical holiday period, leading to loss of retail shelf space that management has struggled to recapture.

"Institutional investors play a critical role in securities class actions. Their participation ensures robust class representation and can meaningfully influence the trajectory of litigation on behalf of all shareholders who purchased VITL during the Class Period." -- Joseph E. Levi, Esq.

INSTITUTIONAL INVESTOR REPRESENTATION -- Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years.

Frequently Asked Questions About the VITL Lawsuit

Q: Who is eligible to join the VITL investor lawsuit? A: Investors who purchased VITL stock or securities between May 8, 2025 and February 26, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: What is the VITL lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is May 26, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What documents do I need to make a claim? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: Can I join a different law firm's lawsuit instead? A: Multiple firms often file competing complaints. The court consolidates and appoints a single lead counsel. Contacting Levi & Korsinsky before May 26, 2026 ensures your losses are considered.

CONTACT:

Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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