On August 24, 2015, Haeggquist & Eck, LLP and Robbins Geller Rudman & Dowd LLP filed a complaint alleging violations of the federal securities laws by El Pollo Loco Holdings, Inc. and certain of its officers and/or directors. The class action was commenced in the United States District Court for the Central District of California on behalf of purchasers of El Pollo Loco securities between May 15, 2015, and August 13, 2015 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days, by October 23, 2015. If you are a member of this class, you can click here to view a copy of the complaint or join this class action online at http://www.rgrdlaw.com/cases/elpolloloco/.
If you wish to serve as a Lead Plaintiff in this action, please contact plaintiff’s counsel, Amber Eck of Haeggquist & Eck, LLP at (619) 468-5222. 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 alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information about El Pollo Loco’s business and prospects, including that traffic at El Pollo Loco stores, had declined substantially due to the removal of the value items from the restaurants’ menu boards, and that as a result, comparable store sales were not growing at 3%, much less the 3% to 5% the defendants had led investors to believe they would grow in the second quarter of 2015. As a result of these false and misleading statements and/or omissions, El Pollo Loco securities traded at artificially inflated prices during the Class Period, with the Company’s stock price reaching a high of $25.37 per share.
After the close of trading on August 13, 2015, the Company issued a release announcing its second-quarter 2015 results for the three-month period ended July 1, 2015. El Pollo Loco disclosed that contrary to defendants’ prior claims of being on track to achieve 3%-5% comparable-store sales increases, second-quarter 2015 “[s]ystem-wide comparable restaurant sales [had grown] 1.3%, including a 0.5% decrease for company-operated restaurants, and a 2.6% increase for franchised restaurants.” On this news, the price of El Pollo Loco’s shares declined by 20% from its closing price of $18.36 per share on August 13, 2015, to $14.56 per share on August 14, 2015.
Plaintiff seeks to recover damages on behalf of all purchasers of El Pollo Loco common stock during the Class Period.