Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Southern District of Texas on behalf of all persons or entities that purchased the securities of Ignite Restaurant Group, Inc. (“Ignite” or the “Company”) (NASDAQ GS: IRG) in or traceable to the Company’s May 10, 2012 initial public offering (the “IPO”), alleging violations of the Securities Act of 1933 against the Company, certain of its officers and directors, and the underwriters in the IPO (the “Complaint”).
If you purchased shares of Ignite in or traceable to the IPO and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to firstname.lastname@example.org, or at: http://www.rigrodskylong.com/investigations/ignite-restaurant-group-inc-irg.
Ignite, a Delaware corporation headquartered in Houston, Texas, operates two restaurant businesses, Joe’s Crab Shack and Brick House Tavern + Tap. According to the Complaint, the Company’s Registration Statement and Prospectus issued in connection with the Company’s IPO, contained material errors relating to the Company’s accounting treatment of leases since nearly the Company’s inception.
On July 18, 2012, Ignite issued a press release announcing that, following an internal assessment of its lease accounting policies, the Company had determined it necessary to correct non-cash related errors related to its accounting treatment of certain leases. In addition, as a follow-up to this review, the Company is also commencing a detailed review of its historical accounting for fixed assets and related depreciation expense in prior periods as a private company. Further, the release states that the lease accounting errors have been preliminarily quantified by the Company and date back to 2006, the year of the Company’s origination. On this news, shares in Ignite plummeted over 20%, closing at $15.15 per share on July 19, 2012, on volume of over 1.6 million shares.