Glancy Binkow & Goldberg LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Texas on behalf of a class (the “Class”) consisting of all persons or entities who purchased the common stock of Ignite Restaurant Group, Inc. (“Ignite” or the “Company”) (NASDAQ:IRG) pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with the Company’s May 10, 2012 initial public offering (the “IPO”), seeking to pursue remedies under the Securities Act of 1933.
Ignite, together with its subsidiaries, owns and operates restaurants under the Joe's Crab Shack and the Brick House Tavern+Tap brands. The Complaint alleges that the Registration Statement and Prospectus issued in connection with the Company’s IPO misrepresented and/or failed to disclose material adverse information concerning the Company’s financial performance. Specifically, the Complaint alleges that the Registration Statement and Prospectus contained material errors, dating back to the Company’s inception, related to the Company’s accounting treatment of leases.
On July 18, 2012 Ignite announced that following an internal assessment of its lease accounting policies, the Company has determined that it is necessary to correct non-cash related errors related to its accounting treatment of certain leases. According to the Company, it is also commencing a detailed review of its historical accounting for fixed assets and related depreciation expense in prior periods as a private company. Following the completion of this accounting review, the Company plans to restate its financial results for the fiscal years 2009 through 2011, along with the first quarter of fiscal 2012.
On July 19, 2012, following the Company’s announcement, shares of Ignite declined precipitously, more than 20%, on unusually heavy volume.No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you are a member of the above-described Class, you have certain rights, and have until September 18, 2012 to move for lead plaintiff status. To be a member of the class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent class member. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, by telephone at (310) 201-9150, Toll Free at (888) 773-9224, by e-mail to firstname.lastname@example.org or visit our website at http://www.glancylaw.com. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.