NEW YORK, Jan. 29, 2013 /PRNewswire/ -- Attorney Advertising - Bronstein, Gewirtz & Grossman, LLC announces that a class action suit was filed in the United States District Court for the Central District of California on behalf of purchasers of Yum! Brands, Inc. ("Yum" or the "Company") (NYSE: YUM) between October 9, 2012 and January 7, 2013, inclusive (the "Class Period").
On November 23, 2012, reports in the Chinese media claimed that certain of the Company's chicken suppliers fed toxic chemicals to chickens sold to KFC China. Then on January 7, 2013, YUM revealed in a filing with the SEC the Company lowered its China Division's full-year 2012 guidance for same-store sales, due to publicity surrounding the Chinese government's review of Yum's poultry supply. As a result of these disclosures, on January 8, 2013 Yum shares dropped 5%, from $67.89 per share to as low as $64.40 per share.
The Complaint alleges that throughout the Class Period the defendants misrepresented and/or failed to disclose that: (1) slowing economic trends in China were stronger than reported and could not support Yum's China Division's forecasted sales results or the Company's increased earnings-per-share growth; (2) defendants knew but concealed that the Company's own food safety inspections had already discovered high levels of antibiotics and other illegal drugs and/or chemicals in chickens purchased from a Chinese supplier -- Shandong Liuhe Group; and (3) Yum had continued to buy products from Shandong Liuhe Group until as late as August 2012.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email email@example.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. March 25, 2013 is the deadline for investors to seek a lead plaintiff appointment.Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.