Beyond Meat Shares Plummet Amid Crisis and Probes

The pioneering plant-based meat company is now fighting for its survival. A confluence of severe challenges, including newly authorized corporate actions and the launch of multiple fraud investigations, has pushed the firm to the brink. Investor confidence is being shattered by a perfect storm of delisting threats, significant shareholder dilution, and burgeoning legal disputes.

On November 21, 2025, the situation intensified. Several law firms, including Bleichmar Fonti & Auld LLP and The Schall Law Firm, announced they are conducting probes into potential violations of securities law. Concurrently, shareholders gave their approval for a series of drastic capital restructuring measures.

As legal threats mount, the company's capital structure is undergoing a radical transformation. Shareholders have approved aggressive measures that are expected to have devastating consequences for existing equity holders.

Key shareholder-approved resolutions include:
* A 600% increase in authorized shares: The number of common shares authorized jumped from 500 million to 3 billion.
* A reverse stock split: Management was authorized to execute a reverse split, a move designed to artificially inflate the share price.
* Debt restructuring: The issuance of new 7.00% convertible notes due in 2030 was approved.

The authorization of up to 2.5 billion new shares signals the potential for massive dilution, which would drastically reduce the ownership percentage of current investors.

Should investors sell immediately? Or is it worth buying Beyond Meat?

Securities Fraud Probes Amplify Concerns

The newly launched investigations are focusing on whether the company issued false or misleading statements concerning its financial health. A central point of scrutiny is the handling of long-term assets. While Beyond Meat conducted a global operational review and impaired certain assets at the end of 2023, it later announced substantial additional impairment charges for the third quarter of 2025.

This discrepancy, coupled with a delayed filing of its Q3 2025 financial results, has fueled suspicions that balance sheet values may have been inflated. The law firms are examining whether investors were systematically misled about the company's true financial strength.

Share Price Collapse and Looming Delisting

The market's reaction has been severe. The stock is currently trading in the range of $0.85 to $0.88, representing a catastrophic decline of more than 80% for the year. This price places it firmly below the critical $1.00 threshold required to maintain its listing on the Nasdaq exchange.

The approval of a reverse stock split underscores the dire circumstances. With an organic recovery above $1.00 appearing highly unlikely given the dilution and ongoing investigations, the company is now poised to rely on an artificial mechanism to boost its share price and avoid a stock exchange delisting.