Southern District Of New York Allows Control Person Claims To Proceed Against Food & Beverage Executive

On July 28, 2025, Judge Jessica G. L. Clarke of the United States District Court for the Southern District of New York denied a motion for judgment on the pleadings to dismiss a claim under Section 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) in a putative class action against a former executive (the “Individual Defendant”) of a natural food and beverages company (the “Company” and, together, “Defendants”). The complaint alleges Defendants concealed that the source of the Company’s increased profits derived from allegedly unsustainable business practices. Sills v. United Natural Foods, Inc. , 23-CV-2364 (S.D.N.Y. July 28, 2025). The Court previously denied Defendants’ motion to dismiss the alleged predicate violations under Section 10(b) of the Exchange Act and Rule