Ryan & Maniskas, LLP Announces Class Action Lawsuit Against Yum! Brands, Inc.
WAYNE, Pa., Jan. 28, 2013 /PRNewswire/ -- Ryan & Maniskas, LLP (www.rmclasslaw.com/cases/yum) 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 Yum! Brands, Inc. ("Yum" or the "Company") (NYSE: YUM) publicly traded securities during the period between October 9, 2012 and January 7, 2013 (the "Class Period").
For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at email@example.com or visit: www.rmclasslaw.com/cases/yum.
The complaint charges Yum and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Yum describes itself as the world's largest quick service restaurant company which, through the three concepts of KFC, Pizza Hut and Taco Bell, develops, operates, franchises, and licenses a worldwide system of restaurants. Yum's business consists of four reporting segments: the China Division, the India Division, Yum! Restaurants International, and the United States Division.
The complaint alleges that during the Class Period, the defendants made materially false and misleading statements concerning the Company's current and future business and financial condition. As a result of defendants' false and misleading statements, Yum common stock traded at artificially inflated prices during the Class Period, reaching over $74 per share.
On November 23, 2012, reports in the Chinese media disclosed that certain of the Company's chicken suppliers had been feeding toxic chemicals to chickens sold to KFC China. On November 29, 2012, the Company announced that its previous forecast of single-digit to flat China Division same-store sales growth would not be met, but instead, the Company expected to report China Division same-store sales of -4%. On these disclosures, Yum's stock price fell nearly 9% to close at $67.08 per share on November 30, 2012.
On December 20 and 21, 2012, news reports began to circulate that the Company knew well before the Class Period that certain chicken suppliers in China had injected chickens with excessive antibiotics and other illegal chemicals but sought to conceal these facts. These disclosures caused Yum's stock price to drop further to a close of $63.88 per share on December 21, 2012.
Then, on January 7, 2013, the Company filed a Form 8-K with the SEC updating its full year 2012 guidance for same-store sales for its China Division, stating that it was lowering its financial outlook due to publicity surrounding the Chinese government's review of its poultry supply. As a result of the January 7, 2013 disclosures, on January 8, 2013, Yum shares dropped 5% from $67.89 per share to as low as $64.40 per share.
If you are a member of the class, you may, no later than March 25, 2013, 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.
For more information about the case or to participate online, please visit: www.rmclasslaw.com/cases/yum or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at firstname.lastname@example.org. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
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.
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