Law Offices of Todd M. Garber Announces Class Action Lawsuit Against Yum!
LOS ANGELES -- February 23, 2013
The Law Offices of Todd M. Garber announces that a class action lawsuit has
been filed in the United States District Court for the Central District of
California on behalf of a class (the “Class”) comprising all purchasers of the
securities of Yum! Brands, Inc. (“Yum” or the “Company”) (NYSE:YUM) between
October 9, 2012 and January 7, 2013, inclusive (the “Class Period”). YUM,
together with its subsidiaries, operates quick service restaurants in the
United States and internationally under the KFC, Pizza Hut and Taco Bell
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 December 20 and 21, 2012 news outlets reported that the
Company knew well before October 2012, but sought to conceal, that certain
chicken suppliers in China had injected chickens with excessive antibiotics
and other illegal chemicals.
The Complaint alleges that throughout the Class Period the defendants
misrepresented and/or failed to disclose that: (1) slowing economic trends in
China were stronger than reported and could not support forecasted sales
results for Yum’s China Division or the Company’s increased earnings-per-share
growth; (2) defendants knew but concealed that the Company’s own food safety
inspections had already discovered high levels of antibiotics and other
illegal drugs and/or chemicals in chickens purchased from a Chinese supplier
-- Shandong Liuhe Group; and (3) Yum had continued to buy products from
Shandong Liuhe Group until as late as August 2012.
On January 7, 2013, in a filing with the SEC, the Company lowered its China
Division’s full-year 2012 guidance for same-store sales, due to publicity
surrounding the Chinese government’s review of Yum’s poultry supply. As a
result of these 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 above-described Class, you may move the Court no
later than March 25, 2013 to serve as lead plaintiff; however, you must meet
certain legal requirements. To be a member of the Class you need not take any
action at this time, or you may retain counsel of your choice. If you have
information or would like to learn more about these claims, or if you have any
questions concerning this announcement or your rights or interests with
respect to these matters, please contact Todd M. Garber, Esquire, of the Law
Offices of Todd M. Garber, by telephone at 213-700-7262 or by email to
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
Law Offices of Todd M. Garber
Todd M. Garber, Attorney at Law
Los Angeles, California
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