San Diego, CA -- (SBWIRE) -- 07/02/2014 -- An investigation on behalf of current long-term investors in shares of Ruby Tuesday, Inc. (NYSE:RT) concerning potential breaches of fiduciary duties by certain directors and officers of Ruby Tuesday was announced.
Investors who are current long term investors in Ruby Tuesday, Inc. (NYSE:RT) shares, have certain options and should contact the Shareholders Foundation, Inc. at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in NYSE:RT stocks follows a lawsuit filed recently against Ruby Tuesday, Inc. over alleged securities laws violations. The investigation on behalf of current long term investors in NYSE:RT stocks, concerns whether certain Ruby Tuesday officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Middle District of Tennessee the plaintiff alleges that the defendants violated Federal Securities Laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the plaintiff claims that between April 11, 2013 and October 9, 2013Ruby Tuesday issued allegedly materially false and misleading statements regarding its financial performance and future prospects and failed to disclose the following adverse facts that changes made to the menu at Ruby Tuesday, Inc.’s flagship Ruby Tuesday chain to increase the range of offerings and price points were negatively impacting sales, as the average sales check price was declining without contemporaneous increases in traffic, that contrary to the reported progress being made in a turnaround effort, same-store sales were continuing to decline exponentially at the Company’s flagship Ruby Tuesday chain, that the Company had experienced a dramatic decline in sales at its Lime Fresh Grill restaurants, and as a result, the carrying value of that chain’s goodwill, trademark and properties and equipment was materially impaired, that the Company’s expenses and losses were being materially understated, that the value of the Company’s deferred tax assets were overstated, and that based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company’s business between April 11, 2013 and October 9, 2013.
On July 24, 2013, Ruby Tuesday, Inc reported its fourth quarter and annual fiscal 2013 results. Among other things, Ruby Tuesday, Inc also issued its Fiscal Year 2013 outlook. Ruby Tuesday, Inc.’s Total Revenue declined from over $1.31 billion for the 53 weeks period that ended on June 5, 2012 to over $1.25 billion for the 52 weeks period that ended on June 4, 2013 and that its respective Net Loss increased from $0.19 million to $39.41 million. Shares of Ruby Tuesday, Inc declined from almost $9.79 per share on July 18, 2013 to as low as $7.04 per share on August 27, 2013.
Then on October 9, 2013, Ruby Tuesday, Inc reported its first quarter fiscal 2014 results. Shares of Ruby Tuesday, Inc declined from $7.72 per share on October 9, 2013, to $6.00 per share on October 15, 2013.
On June 30, 2014, NYSE:RT shares closed at $7.59 per share.
Those who purchased shares of Ruby Tuesday, Inc. have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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