The Campbell’s Co. (NASDAQ:CPB) has taken action against a senior executive following allegations of disparaging remarks about the company and its products.
VP Placed On Leave Amid Probe
The company, in a statement on Tuesday, has placed Martin Bally, its Vice President of Information Technology, on leave while it investigates a lawsuit that accuses him of making derogatory comments about the company and its products.
In a statement, the company expressed that the alleged comments were “unacceptable” and do not align with its values and culture. The company emphasised that such language is not tolerated under any circumstances.
Campbell Soup also refuted the allegations regarding the ingredients used in its products. “..recording about our food are not only inaccurate—they are patently absurd,” they stated.
The company clarified that the chicken meat in its soups comes from long-trusted, USDA-approved U.S. suppliers and meets its high-quality standards. It stated that all its soups are made with "No Antibiotics Ever" chicken meat, and that any claims to the contrary were “completely false.”
Lawsuit In Challenging Times
The lawsuit, filed in Michigan on November 20, alleges that Bally made offensive remarks about Indian workers and referred to the company’s products as food for “poor people.” He also allegedly claimed that the company’s meat was produced using a 3D printer.
The suit was filed by Robert Garza, a cybersecurity analyst hired in 2024. In the lawsuit, he claimed to have reported the comments to his manager in January but wasn't advised to take it to HR, and was fired just weeks afterward.
The allegations against Bally come at a time when Campbell Soup is navigating a challenging market. The company recently reported a slight miss in its fourth-quarter revenue expectations, despite a 1% year-over-year sales growth. The company attributed the 3% year-over-year decline in organic net sales to lower volume/mix.
Benzinga's Edge Rankings place Campbell Soup in the 73rd percentile for growth and the 34th percentile for quality, reflecting its average performance. Check the detailed report here.
Price Action: On a year-to-date basis, the stock declined 27.62%%. On Tuesday, it edged 0.62% lower to close at $30.42, as per Benzinga Pro.
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