A lawsuit was filed by a current investor in Yum! Brands, Inc. (NYSE:YUM) shares over alleged breaches of fiduciary duty and current long-term NYSE:YUM stockholders should contact the Shareholders Foundation at mail at shareholdersfoundation.com
San Diego, CA -- (SBWIRE) -- 05/22/2013 -- An investor, who holds NYSE:YUM shares filed a lawsuit against certain directors and officers of Yum! Brands, Inc. The plaintiff alleges that Yum! Brands cost shareholders billions of dollars by allegedly concealing that a supplier was providing chicken overdosed with antibiotics to its restaurants in China.
Investors who are current long term stockholders in Yum! Brands, Inc. (NYSE:YUM) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that defendants failed to implement appropriate internal controls at Yum's Chinese operations. The plaintiff says that this lack of internal controls allowed senior management to violate food health and safety standards in its restaurants in China for several years which, when revealed, subjected the company to a major decrease in business and may result in significant fines and penalties.
The plaintiff claims that since at least 2010Yum! Brands, Inc. knew as a result of its internal investigations that one of its Chinese suppliers was providing the company with chicken containing excessive levels of antibiotics, but allegedly continued purchasing chickens from this supplier until at least August 2012.
On October 9, 2012, Yum! Brands Inc. reported results for the third quarter ended September 8, 2012. Among other things, Yum! Brands, Inc. said that in China its category-leading brands and competitive positions are stronger than ever and that the strong performance, combined with its new expectation to open over 750 high-return new restaurants this year, further demonstrates why Yum! Brands Inc. is so confident in the long-term growth of its China business
Then on Nov. 29, 2012, Yum! Brands, Inc. announced its Full-Year 2013 expectations and reconfirmed its full-year 2012 EPS growth forecast. Among other things, Yum! Brands, Inc. said that for the fourth quarter the operating performance from Yum! Restaurants International and its U.S. division is offsetting softer sales in China, where it now expected same-store sales to be negative.
On Dec. 21, 2012, Yum! Brands, Inc. disclosed that it is cooperating fully with the Chinese government's review of two poultry suppliers who provided chicken with unapproved levels of antibiotics to KFC.
Shares of Yum! Brands, Inc. declined from $74.74 in November 2012 to as low as $59.85 per share in early Feb. 2013.
On May 21, 2013, NYSE:YUM shares closed at $70.18 per share.
Those who are current long term investors in Yum! Brands, Inc. (NYSE:YUM) shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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