NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/rubytuesday/) today announced that a class action has been commenced in the United States District Court for the Middle District of Tennessee on behalf of purchasers of Ruby Tuesday, Inc. (“Ruby Tuesday”) (NYSE:RT) common stock during the period between April 11, 2013 and October 9, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/rubytuesday/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Ruby Tuesday and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Ruby Tuesday, together with its subsidiaries, owns, develops, operates, and franchises a chain of hundreds of casual dining restaurants in the United States and internationally.
The complaint alleges that during the Class Period, Ruby Tuesday issued materially false and misleading statements regarding the Company’s financial performance and future prospects and failed to disclose the following adverse facts: (i) that changes made to the menu at the Company’s flagship Ruby Tuesday chain to increase the range of offerings and price points were negatively impacting sales, as the average sales check price was declining without contemporaneous increases in traffic; (ii) that contrary to the reported progress being made in a turnaround effort, same-store sales were continuing to decline exponentially at the Company’s flagship Ruby Tuesday chain; (iii) that the Company had experienced a dramatic decline in sales at its Lime Fresh Grill restaurants, and as a result, the carrying value of that chain’s goodwill, trademark and properties and equipment was materially impaired; (iv) that the Company’s expenses and losses were being materially understated; (v) that the value of the Company’s deferred tax assets were overstated; and (vi) that based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company’s business during the Class Period. As a result of these false and misleading statements and omissions, Ruby Tuesday common stock traded at artificially inflated prices during the Class Period.
On July 24, 2013, defendants reported Ruby Tuesday’s fourth quarter and fiscal 2013 financial results, including declining same-restaurant sales at the flagship Ruby Tuesday restaurants and a $27 million fourth quarter 2013 net loss from continuing operations due in large part to an impairment of the Lime Fresh Grill trademark and related assets and taking a valuation allowance on the Company’s deferred tax assets. On this news, the Company’s stock price fell, closing down at $7.84 per share on July 25, 2013. Then, on October 9, 2013, the Company reported a significant decline in first quarter 2014 revenues and an increase in net losses, driven by further severe same-store sales declines at the flagship Ruby Tuesday restaurants, which the Company disclosed would last at least through the second quarter 2014. On this news the Company’s stock price fell further, closing at $6.26 per share on October 10, 2013.
Plaintiff seeks to recover damages on behalf of all purchasers of Ruby Tuesday common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, with more than 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history, including the largest jury verdict ever in a securities class action. Please visit http://www.rgrdlaw.com for more information.