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 email@example.com
San Diego, CA -- (SBWIRE) -- 03/25/2013 -- A current investor in shares of Yum! Brands, Inc. (NYSE:YUM) filed a lawsuit against certain Yum! Brands, Inc. directors and officers over alleged breaches of fiduciary duties in connection with certain financial statements over certain business practices 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 as far back as 2009 Yum! Brands conducted internal food safety tests on chicken purchased from farmers for consumption in China and found excessive antibiotics, and that Yum! Brands, Inc. allegedly knew that these antibiotics levels violated Chinese food health and safety standards.
Yum! Brands pinpointed the farms from which these tainted chickens were purchased, but continued purchasing chickens from this supplier until at least August 2012, according to the lawsuit.
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. In December news reports had surfaced that Yum! Brands had purchased chickens from suppliers tainted with excessive hormones, antibiotics, and other chemicals in China for at least three years.
According to the lawsuit, on February 4, 2013, Defendants caused Yum! Brands to admit that its China division had purchased tainted chicken for sale in its KFC stores.
Shares of Yum! Brands, Inc. declined from $74.74 in November 2012 to as low as $59.85 per share in early Feb. 2013.
However, the plaintiff claims that while outside shareholders were damaged, many of the Defendants profited by selling between October 9, 2012 to February 4, 2013 over $64 million of personally held common stock.
On March 22, 2013, NYSE:YUM shares closed at $66.69 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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