LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that 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 are a shareholder who suffered a loss, click here to participate.
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 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 purchased BurgerFi securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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