Chanticleer Holdings Inc (NASDAQ: HOTR) Investor Securities Class Action Lawsuit 10/12/2012

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Company Name(s): 
Chanticleer
Case Name: 
Chanticleer Shareholder Class Action Lawsuit 10/12/2012
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: HOTR
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/12/2012
Class Period Begin: 
06/21/2012
Class Period End: 
06/21/2012
Class Period Begin: 
06/21/2012
Class Period End: 
02/19/2013
Court of Filing: 
U.S. District Court for the Southern District of Florida
Deadline To File for Lead: 
12/12/2012
Date Settled: 
04/23/2014
Settlement Amount: 
$850,000
Deadline to Participate in Settlement: 
07/20/2014
Summary: 

March 17, 2015 - The court ordered the authorization of the distribution of the net settlement fund.

August 14, 2014 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

April 23, 2014 - The court preliminarily approved the settlement.

March 31, 2014 - Parties filed a stipulation of settlement.

September 17, 2013 - The court granted in part and denied in part the defendants' motions to dismiss.

May 22, 2013 - The court ordered the dismissal of two defendants without prejudice.

May 17, 2013 - The lead plaintiff filed a notice of voluntarily dismissal of two defendants without prejudice.

April 5, 2013 - The defendants filed motions to dismiss.

February 19, 2013 - The lead plaintiff filed an amended complaint.

January 4, 2013 - The lead plaintiff and lead counsel were appointed.

December 12, 2012 - A lead plaintiff motion was filed.

October 12, 2012 - An investor in shares of Chanticleer Holdings Inc (NASDAQ: HOTR) filed a lawsuit in the U.S. District Court for the Southern District of Florida against Chanticleer Holdings Inc over alleged violations of Federal Securities Laws violations in connection with certain allegedly false and misleading statements.

Chanticleer Holdings Inc (NASDAQ: HOTR) reported that its annual Revenue rose from $0.60 million in 2009 to $1.46 million in 2011. However, its Net Loss increased from $0.81 million in 2009 to $1.1 million in 2011.

The plaintiff alleges on behalf of investors who purchased units and shares pursuant or traceable to Chanticleer Holdings 's June 21, 2012, secondary offering that Chanticleer Holdings Inc allegedly falsely represented that the financial statements for its South African operations, accounting for a majority of its revenues, had been audited. In reality, so the plaintiff, they had not been audited and when Chanticleer Holdings Inc disclosed that the financial statements for its South African operations had not been audited, the NASDAQ halted trading in Chanticleer's stock and warrants.

On September 10, 2012, Chanticleer Holdings Inc (NASDAQ: HOTR) announced that on September 7, 2012, its audit committee, upon recommendation of Chanticleer Holdings’ management determined that Chanticleer Holdings’ consolidated Financial Statements for its fiscal year ending December 31, 2011 and the interim unaudited financial statements for its fiscal quarters ending March 31, 2012 and June 30, 2012 could no longer be relied on. Chanticleer Holdings Inc said it determined that the audited financial statements of Kiarabrite (Pty) Ltd., Dimaflo (Pty) Ltd., Tundraspex (Pty) Ltd., Civisign (Pty) Ltd. and Dimalogix (Pty) Ltd. which are the South African management company and the four entities setup for the stores Chanticleer Holdings operates in South Africa, were not audited as the Company was led to believe. The CFO and Director of Chanticleer Holdings’ South Africa Operations has resigned effective immediately.

NASDAQ: HOTR closed on September 7, 2012, at $3.64 per share.