Flowers Foods: law firm initiates investigation

New Orleans / LA. (ksf) Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick + Foti LLC (KSF), announces that KSF has commenced an investigation into Flowers Foods Incorporated. In August 2016, the Company disclosed that it was under review by the U.S. Department of Labor (DOL) for violations of the Fair Labor Standards Act. The investigation reportedly involves the Company mischaracterizing distributors employed by it as independent contractors resulting in the loss of overtime pay and other benefits. The Company’s actions, directed by its executives, have exposed it to numerous lawsuits filed by the distributors, one of which was settled for USD 9 million, as well as the cost of defending the Company against the DOL investigation and potential liability for penalties, fines, and repayment of back wages and benefits that could reportedly reach USD 1 billion. The Company has also been sued in a securities class action lawsuit for failing to disclose material information, violating federal securities laws. Recently, the court in that case partially denied the Company’s motion to dismiss, allowing the case to move forward. KSF’s investigation is focusing on whether Flowers’ officers and/or directors breached their fiduciary duties to Flowers’ shareholders or otherwise violated state or federal laws.