NEW YORK, May 19, 2014 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz, LLP announces that a class action lawsuit has been filed in the United States District Court for Middle District of Tennessee on behalf of all persons or entities that purchased the securities of Ruby Tuesday, Inc. (NYSE:RT) between April 11, 2013 and October 9, 2013, inclusive (the "class period").
According to the filed complaint, shares of Ruby Tuesday fell multiple times beginning with the release of the company's fourth quarter and fiscal 2013 financial results on July 24, 2013, in which Ruby Tuesday disclosed a 3.1% decrease in same restaurant sales at company-owned restaurants and a 5.1% decrease in sales at domestic franchise restaurants for the fourth quarter. A surprising net loss of $27 million was also reported for the fourth quarter from continuing operations. On this news, Ruby Tuesday stock declined $1.24 per share, to close at $7.84 per share on July 25, 2013.
Ruby Tuesday stock fell again on October 10, 2013, declining $1.29 per share to close at $6.26 per share following the company's first quarter report of a net loss of $22.2 million on $289.7 million in revenues during its first quarter 2014.
It is alleged that, during the class period, Ruby Tuesday failed to disclose to investors that: (i) increasing the range of price points on its menus was negatively impacting sales by decreasing the average check price without increasing customers; (ii) same-store sales were declining despite reports to the contrary; (iii) the decline in sales at its Lime Fresh restaurants, and subsequent lack of impairments on Lime Fresh assets led to a material understatement of the company's losses and expenses; and (iv) the company's deferred tax assets were overstated by $20.1 million.
Wolf Haldenstein has represented individual and institutional investors for many years, serving as lead counsel in numerous cases in United States federal and state courts. Please visit the Wolf Haldenstein website (http://www.whafh.com) for more information about the firm.
If you are a shareholder of Ruby Tuesday, Inc. (NYSE:RT) who suffered a material loss on shares purchased within the class period and would like additional information concerning your rights in this matter, please contact us immediately:
Patrick Donovan, Esquire
Gregory Stone, Director of Case and Financial Analysis
Wolf Haldenstein Adler Freeman & Herz LLP
270 Madison Avenue
New York, New York 10016
Wolf Haldenstein Adler Freeman & Herz LLP did not file the original complaint against Ruby Tuesday, Inc.
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Source:Wolf Haldenstein Adler Freeman & Herz LLP