| COMPANY |
Domino's Pizza, Inc. |
| COURT |
United States District Court for the Eastern District of Michigan |
| CASE NUMBER |
24-cv-12477 |
| JUDGE |
The Hon. Linda Vivienne Parker |
| CLASS PERIOD |
December 7, 2023 through July 17, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS NOVEMBER 19, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
Domino’s, a Delaware corporation with its principal executive offices in Ann Arbor, Michigan, offers pizzas and other food products under the Domino’s brand name through company-owned and franchised stores in the United States and throughout the world. The company’s largest “master franchisee”—i.e., a franchisee that is charged with developing a geographical area and may profit by sub-franchising and selling food and equipment to those sub-franchisees—is Domino’s Pizza Enterprises (“DPE”), which owns and operates a number of Dominos franchises in Europe and Asia.
On July 18, 2024, Domino’s announced its second quarter 2024 financial results and revealed that the company “expects it will fall 175 to 275 stores below its 2024 goal of 925+ net stores in international primarily as a result of challenges in both openings and closures being faced by Domino’s Pizza Enterprises (‘DPE’), one of its master franchisees.” As a result, Domino’s disclosed that the company is “temporarily suspending its guidance metric of 1,100+ global net stores until the full effect of DPE’s store opens and closures on international net store growth are known.” On the corresponding earnings call, Defendant Sandeep Reddy, the company’s Chief Financial Officer, added that the long-term guidance announced at the 2023 Investor Day did not accurately reflect the extent of DPE’s challenges with respect to new store openings and closures of existing stores. On this news, the price of Domino’s common stock declined $64.23 per share, or approximately 13.57%, from a close of $473.27 per share on July 17, 2024, to close at $409.04 per share on July 18, 2024.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants misrepresented and/or failed to disclose that: (1) DPE was experiencing significant challenges with respect to both new store openings and closures of existing stores; (2) as a result, Domino's was unlikely to meet its own previously issued long-term guidance for annual global net store growth; (3) accordingly, Domino’s business and/or financial prospects were overstated; and (4) as a result, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.