BurgerFi International, Inc.
A securities class action has been filed in the USDC – S.D.FL. against BurgerFi International, Inc. (BFI) on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired BurgerFi securities between December 17, 2020 through November 15, 2022.
BurgerFi previously operated as a blank-check company, also referred to as a special purpose acquisition company, which is a development stage company formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business transaction with one or more operating businesses or entities.
On December 17, 2020, the Company announced that it had completed a business combination with BurgerFi International, LLC (“Legacy BurgerFi”), a private Delaware limited liability company touted as “one of the nation’s fastest-growing better burger concepts” (the “Business Combination”). As a result of the Business Combination, among other things, the Company purchased 100% of the membership interests of Legacy BurgerFi, resulting in Legacy BurgerFi becoming a wholly owned subsidiary of the Company, and the Company changed its name to “BurgerFi International, Inc.”
Following the Business Combination, the Company, together with its subsidiaries, has owned and franchised fast-casual and premium-casual dining restaurants.
On November 4, 2021, the Company completed its acquisition of Anthony’s Coal Fired Pizza & Wings (“Anthony’s”) for $156.6 million (the “Anthony’s Acquisition”). Defendant Ophir Sternberg, Executive Chairman of the Company, touted the Anthony’s Acquisition as “a significant step forward in BurgerFi’s ongoing growth strategy and transition into a premium multi-brand platform.”
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:
- the Company had overstated the effectiveness of its acquisition and growth strategies;
- the Company had misrepresented to investors the purported benefits of Anthony’s Acquisition and its post-Business Combination business and financial prospects; and
- as a result, the Company’s public statements were materially false and misleading at all relevant times.
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