Ruby Tuesday Inc (NYSE: RT) Investor Securities Class Action Lawsuit 05/06/2014

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Company Name(s): 
Ruby Tuesday
Case Name: 
Ruby Tuesday Shareholder Class Action Lawsuit 05/06/2014
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: RT
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/06/2014
Class Period Begin: 
04/10/2013
Class Period End: 
10/09/2013
Court of Filing: 
U.S. District Court for the Middle District of Tennessee
Deadline To File for Lead: 
07/07/2014
Date Settled: 
03/31/2017
Settlement Amount: 
$5,000,000
Deadline to Participate in Settlement: 
07/17/2017
Settlement Notice: 
Settlement Proof: 
Summary: 

August 7, 2017 - The court approved the settlement and entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissing the action with prejudice.

March 31, 2017 - The court preliminarily approved the settlement.

March 29, 2017 - Parties filed a stipulation of settlement.

March 31, 2016 - The court granted in part and denied in part defendants' motion to dismiss.

February 13, 2015 - The defendants filed a motion to dismiss.

October 1, 2014 - The lead plaintiff and lead counsel were appointed.

May 6, 2014 - An investor in shares of Ruby Tuesday Inc (NYSE: RT) filed a lawsuit in the U.S. District Court for the Middle District of Tennessee against Ruby Tuesday Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between April 11, 2013 and October 9, 2013.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Ruby Tuesday Inc (NYSE: RT) between April 11, 2013 and October 9, 2013, that the defendants violated Federal Securities Laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

More specifically, the plaintiff claims that between April 11, 2013 and October 9, 2013 Ruby Tuesday Inc issued allegedly materially false and misleading statements regarding its financial performance and future prospects and failed to disclose the following adverse facts that changes made to the menu at Ruby Tuesday Inc’s flagship Ruby Tuesday Inc chain to increase the range of offerings and price points were negatively impacting sales, as the average sales check price was declining without contemporaneous increases in traffic, that contrary to the reported progress being made in a turnaround effort, same-store sales were continuing to decline exponentially at the Company’s flagship Ruby Tuesday Inc chain, that the Company had experienced a dramatic decline in sales at its Lime Fresh Grill restaurants, and as a result, the carrying value of that chain’s goodwill, trademark and properties and equipment was materially impaired, that the Company’s expenses and losses were being materially understated, that the value of Ruby Tuesday Inc’s deferred tax assets were overstated, and that based on the foregoing, defendants lacked a reasonable basis for their positive statements about Ruby Tuesday Inc’s business between April 11, 2013 and October 9, 2013.

Ruby Tuesday Inc reported that its Total Revenue rose from over $1.26 billion for the 52 weeks period that ended on May 31, 2011 to over $1.131 billion for the 53 weeks period that ended on June 5, 2012. Shares of Ruby Tuesday Inc (NYSE: RT) grew from $6.03 per share on July 27, 2012 to as high as $9.79 per share on July 18, 2013.

Then on July 24, 2013, Ruby Tuesday Inc reported its fourth quarter and annual fiscal 2013 results. Among other things, Ruby Tuesday Inc also issued its Fiscal Year 2013 outlook. Ruby Tuesday Inc’s Total Revenue declined from over $1.31 billion for the 53 weeks period that ended on June 5, 2012 to over $1.25 billion for the 52 weeks period that ended on June 4, 2013 and that its respective Net Loss increased from $0.19 million to $39.41 million. Shares of Ruby Tuesday Inc declined from almost $9.79 per share on July 18, 2013 to as low as $7.04 per share on August 27, 2013.

Then on October 9, 2013, Ruby Tuesday Inc reported its first quarter fiscal 2014 results. Shares of Ruby Tuesday Inc (NYSE: RT) declined from $7.72 per share on October 9, 2013, to $6.00 per share on October 15, 2013.

On May 6, 2014, Ruby Tuesday Inc (NYSE: RT) shares closed at $7.73 per share.