BFIIW - Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against BurgerFi International Inc.
NEW YORK, April 10, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of Florida on behalf of all persons or entities who purchased the securities of BurgerFi International, Inc. (“BurgerFi” or the “Company”) (f/k/a Opes Acquisition Corp.) (“OPES”) (NASDAQ: BFI; BFIIW; OPESU; OPES; OPESW) between December 17, 2020 and November 15, 2022, both dates inclusive (the “Class Period”).
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”). 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 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, 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, 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.” 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.
Investors who purchased or otherwise acquired shares of Burgerfi should contact the Firm prior to the June 5, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com .
Please visit our website at http://www.gme-law.com for more information about the firm.