Updated: February 15, 2021
Status: Ongoing Case
Labaton Sucharow LLP is currently litigating in New York state court a securities class action against Restaurant Brands International, Inc. (“Restaurant Brands”) concerning certain false and misleading statements made in connection with Restaurant Brands’ 2019 secondary offerings.
On December 18, 2020, Labaton Sucharow filed a complaint for violation of the Securities Act of 1933 (the “Amended Complaint”). The Amended Complaint alleges that the shelf registration statement used to conduct the offerings touted the Company’s “significant growth potential” and growth initiatives to strengthen its Tim Hortons business while failing to disclose, inter alia, that: (i) the Tim Hortons brand was not positioned for growth; (ii) the Tims Rewards loyalty program and its significant discounting was not increasing profitability as evidenced by weekly sales data; (iii) existing product offerings were not expanding RBI’s customer base; and (iv) the Company was unable to “maintain its competitive position.”
On October 26, the day the action was commenced, Restaurant Brands’ stock had already plummeted from its offering prices of $73.50 and $75.10 to closing at $55.41 per share.
The case is City of Warwick Municipal Employees Pension Fund v. Restaurant Brands International, Inc. et al., Index No. 655686/2020, in the Supreme Court of the State of New York, County of New York. Labaton Sucharow represents plaintiff City of Warwick Municipal Employees Pension Fund. The defendants are Restaurant Brands, certain of its officers and directors, and the underwriters for its secondary offerings.