Yum Brands (YUM) Securities Fraud Class Action Lawsuit
Yum Brand securities fraud class action summary
On January 7, 2013, Yum (owner of KFC) announced that it was lowering its financial outlook due to publicity surrounding the Chinese government’s review of its poultry supply. From November, 2012 through January, 2013 news reports from China allege that certain of Yum’s Chinese chicken suppliers had been feeding toxic chemicals to chickens sold to KFC China and that Yum knew well in advance that certain chicken suppliers in China had injected chickens with excessive antibiotics and other illegal chemicals but sought to conceal these facts. As therse facts have been coming to light, YUM Brands has lost $4.4 billion in market value.
Yum Brands comes under Chinese government scrutiny
Yum Brands owns, operates, franchises and licenses three fast food restaurant chains: KFC, Pizza Hut and Taco Bell. On November 23, 2012, Chinese media disclosed that certain of Yum Brand’s chicken suppliers had been feeding toxic chemicals to chickens sold to KFC China. On November 29, 2012, Yum Brands announced that its previous forecast of single-digit to flat China Division same-store sales growth would not be met, but instead, the Yum expected to report China Division same-store sales of -4%. On these disclosures, Yum’s stock price fell nearly 9% to close at $67.08 per share on November 30, 2012. On December 20 and 21, 2012, news reports began to circulate that Yum Brands knew and concealed from the public and investors that certain chicken suppliers in China had injected chickens with excessive antibiotics and other illegal chemicals but sought to conceal these facts.
Yum shareholders hit hard by Yum Brand poultry scandal
From November 23, 2012 when the story first broke in Chinese media, until January 8, 2013 when Yum Brands acknowledged that China revenues would be adversley affected by the pultry scandal, Yum Brand shareholders lost roughly $4.4 billion in market value - in less than one month!
Yum Brand (YUM) securites fraud class action investigation
We are investigatng whether the underlying facts alleged in Chinese media are true. Did Yum Brands conceal the fact that chicken in its China-based KFC restuarants was tainted? If you are a Yum Brand shareholder, please complete the web form on this page to join our investigation.
Yum Brands Inc.
Monday, March 25, 2013
YUM investors complete this form for FREE LEGAL review.