Bernstein Liebhard LLP Announces That A Securities Class Action Has Been Filed
Against Yum! Brands, Inc.
NEW YORK, Feb. 20, 2013
NEW YORK, Feb. 20, 2013 /PRNewswire/ -- Bernstein Liebhard LLP today announced
that a securities class action has been commenced in the United States
District Court for the Central District of California on behalf of a class
(the "Class") of purchasers of Yum! Brands, Inc. ("Yum" or the "Company")
(NYSE: YUM) securities between October 9, 2012 and January 7, 2013 (the "Class
Plaintiffs allege that Yum and certain of its officers and directors violated
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, defendants made materially
false and misleading statements concerning Yum's current and future business
and financial condition. As a result of defendants' 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; 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.
Then, on December 20 and 21, 2012, news reports began to circulate that Yum
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.
Finally, 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.
According to the complaint, the representations by defendants concerning the
Company's current business and financial condition were each materially false
and misleading when made, because defendants failed to disclose: (a) slowing
economic trends in China were stronger than reported and could not support the
forecasted sales results for the Company's China Division or the Company-wide
increased earnings per share growth; (b) Yum's own food safety inspections had
already found that Chinese chicken supplier Shandong Liuhe Group ("Shandong
Liuhe") had sold the Company chickens with high levels of antibiotics and
other illegal drugs and/or chemicals; and (c) the Company had continued to buy
products from Shandong Liuhe until as late as August 2012.
Plaintiffs seek to recover damages on behalf of all Class members who invested
in Yum securities during the Class Period. If you invested in Yum securities
as described above during the Class Period, and either lost money on the
transaction or still hold the shares, you may wish to join in this action to
serve as lead plaintiff. In order to do so, you must meet certain
requirements set forth in the applicable law and file appropriate papers no
later than March 25, 2013.
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 Bernstein Liebhard LLP, or other counsel
of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as a Yum shareholder and/or
have information relating to the matter, please contact Joseph R. Seidman, Jr.
at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and
shareholder rights cases and recovered over $3 billion for its clients. It
has been named to The National Law Journal's "Plaintiffs' Hot List" in each of
the last ten years.
You can obtain a copy of the complaint from the clerk of the court for the
United States District Court for the Central District of California.
Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
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for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New
York, New York 10016, (212) 779-1414. The lawyer responsible for this
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do not guarantee or predict a similar outcome with respect to any future
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
SOURCE Bernstein Liebhard LLP
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