Domino’s Pizza Investors File Class Action Over Misleading Store Growth Projections

E.D. Michigan

Court

2:24-cv-12477

Case number

07 Dec 2023

Class period Start

17 Jul 2024

Class period End

19 Nov 2024

Lead Plaintiff motion deadline

Scott Bender and other investors have filed a claim against Domino's Pizza for overstating its store growth forecasts, which led to a significant drop in its stock price.
On July 18, 2024, Domino’s stock dropped by 13% after announcing that it would fall 175 to 275 stores short of its 2024 growth target.
Investors who were affected by this drop in Domino's stock can join the class action to seek compensation for their financial losses.
On July 18, 2024, Domino’s announced that it was lowering its store growth expectations for 2024, citing challenges faced by its largest franchisee, Domino’s Pizza Enterprises (DPE). These challenges included difficulties in opening new stores and the closure of existing locations. This news led to a sharp decline in the company's stock price, which fell over 13% as investors reacted to the disappointing announcement.

Between December 7, 2023, and July 17, 2024, Domino’s gave positive growth projections, promising a net increase of 1,100+ stores per year. 

However, the company did not reveal that its largest franchisee, DPE, was struggling to meet these growth goals. When Domino’s reported its second-quarter financial results for 2024, it revealed that it would miss its growth target by up to 275 stores.

Based on these events, Dominos stockholders filed a claim against Dominos and its leadership, accusing them of the following:
Domino’s exaggerated its store growth projections and did not inform investors about the problems its franchisee was facing.
As a result, the company’s financial outlook was overstated, and the information provided to the public was misleading.
These misleading statements caused investors to suffer financial losses.
One of Domino’s investors has already filed a claim, and others are encouraged to join the lawsuit to recover their losses.

Case Status

Lead Plaintiff Submission

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

18 July 2024

Filing date

20 September 2024

Lead Plaintiff Deadline

19 November 2024

Judge

Kenneth M. Karas

Domino’s Pizza Investors File Class Action Over Misleading Store Growth Projections

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