Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased BurgerFi International, Inc. f/k/a Opes Acquisition Corp. (“BurgerFi” or the “Company”) (NASDAQ: BFI) securities between December 17, 2020 and November 15, 2022, inclusive (the “Class Period”). BurgerFi investors have until June 5, 2023 to file a lead plaintiff motion.
Investors suffering losses on their BurgerFi investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On August 11, 2022, before market hours, BurgerFi released its second quarter 2022 financial results, reporting revenue of $45.3 million, missing consensus estimates by $2.28 million, and a net loss of $60.4 million, compared to a net income of $9 million the previous year. The Company attributed its poor results primarily to “goodwill impairment charges of $55.2 million in relation to BurgerFi and Anthony’s coupled with higher depreciation, amortization of intangibles, share-based compensation, interest expense resulting from the acquisition-related debt.”
On this news, BurgerFi’s stock price fell $0.10, or 3%, to close at $3.20 per share on August 11, 2022, thereby injuring investors.
Then, on November 16, 2022, before the market opened, BurgerFi released its third quarter 2022 financial results, once again missing consensus estimates for revenue by $0.84 million, disclosing that, for the BurgerFi brand, “same-store sales decreased 11% and 6% in corporate-owned and franchised locations, respectively.”
On this news, BurgerFi’s stock price fell $0.24, or 10.6%, to close at $2.03 per share on November 16, 2022, thereby injuring investors further.
The complaint filed in this class action 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 failed to disclose to investors that: (1) the Company had overstated the effectiveness of its acquisition and growth strategies; (2) the Company had misrepresented to investors the purported benefits of Anthony’s Acquisition and its post-Business Combination business and financial prospects; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased BurgerFi securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20230413005817/en/
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
