Campbell’s (NASDAQ: CPB) stock crashed more than 3% on Monday, November 24, after a former employee alleged in a lawsuit that the vice president and chief information security officer, Martin Bally, was mocking “poor people,” ridiculing the company’s products, and making racist comments about colleagues.
The accusations center on an audio recording that allegedly contains proof not only of a hostile work environment but also the firing of the whistleblower who reported the incident. Moreover, the executive’s comments on “bioengineered meat that came from a 3-D printer” have also sparked a lot of controversy among environmentally conscious investors.
Amid the growing pressure, Campbell’s shares are down more than 27% year-to-date (YTD), and are trading at $30.53 in pre-market as CPB stock slides further.
CPB 24-hour price. Source: Google FinanceThe negative sentiment has also resulted in a social media boycott, in particular due to the company’s association with backers such as BlackRock and Vanguard, who constitute some of Campbell’s biggest share owners.
Campbell Soup Company faces misconduct charges
Robert Garza, a former cybersecurity analyst, says he started recording what was to be a routine salary meeting with Bally in late 2024 after sensing “something wasn’t right.” According to the lawsuit filed in Wayne County Circuit Court, the vice president started mocking the customers, claiming the company made products for “poor people” and questioning who would buy them at all.
The filing further alleges Bally launched into racist remarks about Indian colleagues, calling them “idiots” who “didn’t know anything” and couldn’t think independently. In addition, the recording allegedly has Bally admitting he used to arrive at work having consumed drugs.
Campbell’s has confirmed that Bally has been placed on leave pending an internal investigation while rejecting the claims about its ingredients.
The lawsuit remains active, and a court ruling will ultimately determine whether any legal consequences stem from the behavior detailed in the complaint, a decision likely to impact share prices further.
Featured image via Shutterstock
Source: https://finbold.com/campbells-soup-stock-crashes-over-alleged-3d-printed-meat/
