SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in BurgerFi International, Inc. f/k/a Opes Acquisition Corp., of Class Action Lawsuit and Upcoming Deadline - BFI; BFIIW; OPESU; OPES; OPESW
NEW YORK, April 19, 2023 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against BurgerFi International, Inc. ("BurgerFi" or the "Company") f/k/a Opes Acquisition Corp. ("OPES") (NASDAQ: BFI; BFIIW; OPESU; OPES; OPESW), and certain officers. The class action, filed in the United States District Court for the Southern District of Florida, and docketed under 23-cv-60657, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired BurgerFi securities between December 17, 2020 and November 15, 2022, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased or otherwise acquired BurgerFi securities during the Class Period, you have until June 5, 2023 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
BurgerFi previously operated as a blank-check company, also referred to as a special purpose acquisition company, which is a development stage company formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business transaction with one or more operating businesses or entities.
On December 17, 2020, the Company announced that it had completed a business combination with BurgerFi International, LLC ("Legacy BurgerFi"), a private Delaware limited liability company touted as "one of the nation's fastest-growing better burger concepts" (the "Business Combination"). As a result of the Business Combination, among other things, the Company purchased 100% of the membership interests of Legacy BurgerFi, resulting in Legacy BurgerFi becoming a wholly owned subsidiary of the Company, and the Company changed its name to "BurgerFi International, Inc."
Following the Business Combination, the Company, together with its subsidiaries, has owned and franchised fast-casual and premium-casual dining restaurants.
On November 4, 2021, the Company completed its acquisition of Anthony's Coal Fired Pizza & Wings ("Anthony's") for $156.6 million (the "Anthony's Acquisition"). Defendant Ophir Sternberg, Executive Chairman of the Company, touted the Anthony's Acquisition as "a significant step forward in BurgerFi's ongoing growth strategy and transition into a premium multibrand platform."
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company had overstated the effectiveness of its acquisition and growth strategies; (ii) the Company had misrepresented to investors the purported benefits of Anthony's Acquisition and its post-Business Combination business and financial prospects; and (iii) as a result, the Company's public statements were materially false and misleading at all relevant times.
On August 11, 2022, during pre-market hours, BurgerFi issued a press release announcing the Company's second quarter ("Q2") 2022 results. Among other results, that press release reported Q2 revenue of $45.3 million, missing consensus estimates by $2.28 million. The Company also disclosed that "[n]et loss in the second quarter was $60.4 million compared to a net income of $9.0 million in the year-ago quarter[,]" which "[wa]s 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" (emphases in original).
On this news, BurgerFi's stock price fell $0.10 per share, or 3.03%, to close at $3.20 per share on August 11, 2022.
Then, on November 16, 2022, during pre-market hours, BurgerFi issued a press release announcing the Company's third quarter ("Q3") 2022 results. Among other results, that press release reported Q3 revenue of $43.3 million, missing consensus estimates by $0.84 million, explaining that "[f]or the BurgerFi brand, same-store sales decreased 11% and 6% in corporate-owned and franchised locations, respectively" (emphases in original).
On this news, BurgerFi's stock price fell $0.24 per share, or 10.57%, to close at $2.03 per share on November 16, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
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