Glancy Binkow & Goldberg LLP Announces Class Action Lawsuit Against Yum! Brands, Inc.
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 shareholders@glancylaw.com,
or visit our website at http://www.glancylaw.com.
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jurisdictions under the applicable law and ethical rules.