Faruqi & Faruqi, LLP’s national practice focuses on complex civil litigation. The firm practices in the areas of Securities, Merger & Transactional, Shareholder Derivative, Antitrust, Consumer Class Action, and Wage & Hour litigation.
Monday, August 31, 2015
Faruqi & Faruqi Alert: El Pollo Loco Holdings, Inc.
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in El Pollo Loco Holdings, Inc. (“El Pollo Loco” or the “Company”) (NasdaaqGS:LOCO) of the October 23, 2015 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
A lawsuit has been filed in the United States District Court for the Central District of California on behalf of a class consisting of all persons or entities who purchased El Pollo Loco securities between May 15, 2015 and August 13, 2015.
The complaint alleges that the Company and its executives violated federal securities laws by failing to disclose that: (1) store traffic had declined substantially beginning in the first quarter of 2015; and (2) as a result, comparable store sales during the second quarter of 2015 ending on July 1, 2015 were 50% lower than the 3%-5% growth the Company had led investors to expect. In fact, during post-market hours on August 13, 2015, the Company reported its second quarter 2015 results which showed that comparable store sales had only grown 1.3%.
After the announcements, El Pollo Loco’s share price fell from a closing price of $18.36 per share on August 13, 2015, to a closing price of $14.56 per share on August 14, 2015—a drop of $3.80 or 20.7%.
If you invested in El Pollo Loco stock or options between May 15, 2015 and August 13, 2015 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding El Pollo Loco’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.