Carter Group's brand, Mrs. Carter Cooking Oil, was exposed for using recycled waste oil in its production. This scandal expanded as more of their food products were revealed to pose serious health risks.
For Carter Group, this was a catastrophic blow. Just two minutes after the scandal broke, the company's stock plummeted, wiping out $500 million in value in those few minutes.
Outraged and alarmed, Carter Group's shareholders immediately convened an emergency meeting, instructing a thorough investigation and ordering that key figures be held accountable.
The next day, Carter Group held a press conference to issue a public apology to consumers nationwide.
Despite Frank's tearful apologies, the damage was done. Supermarkets pulled all of Carter Group's food products from their shelves.
Carter Group, already in poor financial health, now faced a crisis it would not recover from.
