Australian pizza chain Domino’s Pizza Enterprises said Monday it has received a class action lawsuit from shareholders alleging it engaged in misleading or deceptive conduct regarding its expected performance in Japan.
The company’s shares fell 2.5% to A$29.18, their lowest level since late August.
The action was brought by Australian legal consultancy Echo Law on behalf of Domino’s shareholders who acquired a stake in the company through the entry of a share swap confirmation between August 18, 2021 and November 3, 2021.
The class action lawsuit was in connection with a Domino’s advertisement issued on November 3, 2021, Eco Law said on its website.
Eco Law did not immediately respond to Reuters’ request for additional comment.
Domino’s said in a trading update in November 2021 that its operations in Japan had recorded “excellent combined sales” and added that new store openings in the country continued to remain strong.
“As a result of structural changes in marketing, pricing and store penetration, current sales and customer numbers remain significantly higher than the corresponding pre-Covid period,” the pizza chain said in 2021.
Domino’s shares fell to their lowest level in more than nine years in July after analysts cut their profit forecasts for the company following its decision to close low-volume stores in both Japan and France.
Australia’s Domino’s served with class action on ‘misleading’ Japan market comments By Reuters
Australian pizza chain Domino’s Pizza Enterprises said Monday it has received a class action lawsuit from shareholders alleging it engaged in misleading or deceptive conduct regarding its expected performance in Japan.
The company’s shares fell 2.5% to A$29.18, their lowest level since late August.
The action was brought by Australian legal consultancy Echo Law on behalf of Domino’s shareholders who acquired a stake in the company through the entry of a share swap confirmation between August 18, 2021 and November 3, 2021.
The class action lawsuit was in connection with a Domino’s advertisement issued on November 3, 2021, Eco Law said on its website.
Eco Law did not immediately respond to Reuters’ request for additional comment.
Domino’s said in a trading update in November 2021 that its operations in Japan had recorded “excellent combined sales” and added that new store openings in the country continued to remain strong.
“As a result of structural changes in marketing, pricing and store penetration, current sales and customer numbers remain significantly higher than the corresponding pre-Covid period,” the pizza chain said in 2021.
Domino’s shares fell to their lowest level in more than nine years in July after analysts cut their profit forecasts for the company following its decision to close low-volume stores in both Japan and France.