Shareholder rights law firm Johnson & Weaver, LLP has commenced an investigation into whether the parent company of KFC, Yum! Brands, Inc. (NYSE: YUM), issued materially false and misleading statements regarding the Company’s prospects of success in China in order to artificially inflate the company’s share price. Just a few months ago, on October 9, 2012, the company boasted to the investing public that its competitive positions in China “are stronger than ever” and that it was “confident in the long-term growth of our China business.” However, weeks later the company disclosed an investigation by the Chinese government involving its poultry suppliers. More recently, the company was forced to apologize to the investing public when excess amounts of antiviral drugs and hormones were reported in the poultry being sold to the public. Company executives admitted that there were actually shortcomings in the company’s self-checking process and sales were hurt more than expected in China.
The investigation is ongoing and addresses when Yum! executives were made aware of the problems, the extent of the problems, and whether certain officers or directors violated federal securities laws by not making material facts known to shareholders in a timely manner. Frank Johnson, partner for Johnson & Weaver, stated that, "Yum! has made numerous conflicting statements and shareholders appear to have been kept in the dark until recently." Johnson continued, "this conduct could have a significant impact on Yum!’s reputation in China and consequently its bottom line as Yum! generates more 50% of its revenue and operating profits from China.”
If you have information that could assist in this investigation or if you are a Yum! shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact managing partner Frank Johnson ( firstname.lastname@example.org) or the firm’s lead fraud investigator Jim Baker ( email@example.com) at 619-230-0063.
Johnson & Weaver, LLP is a nationally recognized shareholders’ rights law firm. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.