WAYNE, Pa., Aug. 28, 2015 /PRNewswire/ -- Ryan & Maniskas, LLP announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of purchasers of El Pollo Loco Holdings, Inc. ("El Pollo Loco") (NASDAQ: LOCO) common stock during the period between May 15, 2015 and August 13, 2015, inclusive (the "Class Period").
El Pollo Loco shareholders may, no later than October 23, 2015, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of El Pollo Loco and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/loco.
The complaint charges El Pollo Loco, certain of its officers and directors and certain of its controlling shareholders with violations of the Securities Exchange Act of 1934. El Pollo Loco develops, franchises, licenses, and operates quick-service restaurants in the United States.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information about El Pollo Loco's business and prospects, including that traffic at El Pollo Loco stores had declined substantially due to the removal of the value items from the restaurants' menu boards, and that as a result, comparable store sales were not growing at 3%, much less the 3% to 5% the defendants had led investors to believe they would grow in the second quarter of 2015. As a result of these false and misleading statements and/or omissions, El Pollo Loco securities traded at artificially inflated prices during the Class Period, with the Company's stock price reaching a high of $25.37 per share.
After the close of trading on August 13, 2015, the Company issued a release announcing its second quarter 2015 results for the three-month period ended July 1, 2015. El Pollo Loco disclosed that contrary to defendants' prior claims of being on track to achieve 3%-5% comparable store sales increases, second quarter 2015 "[s]ystem-wide comparable restaurant sales [had grown] 1.3%, including a 0.5% decrease for company-operated restaurants, and a 2.6% increase for franchised restaurants." On this news, the price of El Pollo Loco's shares declined by 20% from its closing price of $18.36 per share on August 13, 2015, to $14.56 per share on August 14, 2015.
If you are a member of the class, you may, no later than October 23, 2015, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide. To learn more about the class action process, please visit: www.rmclasslaw.com.
SOURCE Ryan & Maniskas, LLP