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BFI.US
id: 657
BurgerFi (BFI) M&A Misleading Case
S.D. Florida
Court23-CV-60657
Case number12/17/2020
Class period Start11/15/2022
Class period End06/05/2023
Lead Plaintiff motion deadline- BurgerFi missed estimates for Q2 and Q3 2022 revenue.
- $BFI price fell 10.57%, injuring investors.
- Investors suspect BurgerFi & its Leaders of misleading about the prospects of Anthony’s Acquisition.
On November 16, 2022, BurgerFi (BFI) reported Q3 revenue of $43.3 million, missing consensus estimates by $0.84 million, explaining that “for the BurgerFi brand, same-store sales decreased 11% and 6% in corporate-owned and franchised locations, respectively”.
On this news, the $BFI price fell 10.57%, injuring investors.
Going back to November 4, 2021, BurgerFi completed its acquisition of Anthony’s Coal Fired Pizza & Wings for $156.6 million. Ophir Sternberg, Executive Chairman of the Company, touted Anthony’s Acquisition as “a significant step forward in BurgerFi’s ongoing growth strategy and transition into a premium multi-brand platform.”
Later, on August 11, 2022, BurgerFi reported Q2 revenue of $45.3 million, missing consensus estimates by $2.28 million. The Company also disclosed that “net loss in the second quarter was $60.4 million compared to a net income of $9.0 million in the year-ago quarter” which “was primarily the result of goodwill impairment charges of $55.2 million in relation to BurgerFi and Anthony’s coupled with higher depreciation, amortization of intangibles, share-based compensation, interest expense resulting from the acquisition-related debt”. On this news, the $BFI price fell 3.03%.
Taking all representations and consequent results into account, Investors have reasons to suspect BurgerFi and its Leaders of misleading and financial misrepresentations in connection to Anthony’s Acquisition.
Case Status
Voluntary Dismissed
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
11/16/2022
Filing date
04/06/2023
Lead Plaintiff Deadline
06/05/2023