LOS ANGELES--(BUSINESS WIRE)--Glancy Binkow & Goldberg LLP announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of a class (the “Class”) comprising all purchasers of the publicly traded securities of Yum! Brands, Inc. (“Yum” of the “Company”) (NYSE:YUM) between October 9, 2012 and January 7, 2013, inclusive (the “Class Period”). The Complaint alleges that throughout the Class Period the Company and certain of its executive officers issued materially false and misleading statements regarding the Company’s business and financial prospects.
YUM, together with its subsidiaries, operates quick service restaurants in the United States and internationally under the KFC, Pizza Hut and Taco Bell brands. On November 23, 2012 reports in the Chinese media disclosed that certain of the Company’s chicken suppliers had been feeding toxic chemicals to chickens sold to KFC China. On December 20 and 21, 2012 news outlets reported that the Company knew well before October 2012, but sought to conceal, that certain chicken suppliers in China had injected chickens with excessive antibiotics and other illegal chemicals.
Then, on January 7, 2013, in a filing with the SEC the Company lowered its China Division’s full-year 2012 guidance for same-store sales, due to publicity surrounding the Chinese government’s review of Yum’s poultry supply. As a result of these disclosures, on January 8, 2013 Yum shares dropped 5%, from $67.89 per share to as low as $64.40 per share.
The Complaint alleges that throughout the Class Period the defendants misrepresented and/or failed to disclose that: (1) slowing economic trends in China were stronger than reported and could not support Yum’s China Division’s forecasted sales results or the Company’s increased earnings-per-share growth; (2) defendants knew but concealed that the Company’s own food safety inspections had already discovered high levels of antibiotics and other illegal drugs and/or chemicals in chickens purchased from a Chinese supplier -- Shandong Liuhe Group; and (3) Yum had continued to buy products from Shandong Liuhe Group until as late as August 2012.
If you are a member of the Class described above, you may move the Court, no later than March 25, 2013 to serve as lead plaintiff; however, you must meet certain legal requirements. If you wish to learn more about this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at 310-201-9150 or Toll-Free at 888-773-9224, by e-mail to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com.
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