LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired BurgerFi International, Inc. f/k/a Opes Acquisition Corp. (“BurgerFi” or the “Company”) (NASDAQ: BFI) securities between December 17, 2020 and November 15, 2022, inclusive (the “Class Period”). BurgerFi investors have until June 5, 2023 to file a lead plaintiff motion.
If you suffered a loss on your BurgerFi investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/BurgerFi-International-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at email@example.com to learn more about your rights.
On August 11, 2022, before market hours, BurgerFi released its second quarter 2022 financial results, reporting revenue of $45.3 million, missing consensus estimates by $2.28 million, and a net loss of $60.4 million, compared to a net income of $9 million the previous year. The Company attributed its poor results primarily to “goodwill impairment charges of $55.2 million in relation to BurgerFi and Anthony’s coupled with higher depreciation, amortization of intangibles, share-based compensation, interest expense resulting from the acquisition-related debt.”
On this news, BurgerFi’s stock price fell $0.10, or 3%, to close at $3.20 per share on August 11, 2022, thereby injuring investors.
Then, on November 16, 2022, before the market opened, BurgerFi released its third quarter 2022 financial results, once again missing consensus estimates for revenue by $0.84 million, disclosing that, for the BurgerFi brand, “same-store sales decreased 11% and 6% in corporate-owned and franchised locations, respectively.”
On this news, BurgerFi’s stock price fell $0.24, or 10.6%, to close at $2.03 per share on November 16, 2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company had overstated the effectiveness of its acquisition and growth strategies; (2) the Company had misrepresented to investors the purported benefits of Anthony’s Acquisition and its post-Business Combination business and financial prospects; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired BurgerFi securities during the Class Period, you may move the Court no later than June 5, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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