The brand best known for serving and delivering hot pizzas is now in even hotter water. Domino’s just got served a class-action lawsuit for allegedly lying to investors about business growth…
Here are the details…
Domino’s Investor Lawsuit
Investors filed a lawsuit centering on Domino’s Pizza Enterprises, the brand’s largest franchisee…
And lists the company’s CEO and CFO as defendants.
The Domino’s lawsuit was filed on behalf of investors who received company securities from December 2023 to July 2024.
THE COMPLAINT STATES THAT THE COMPANY MISLED INVESTORS AND MADE FALSE STATEMENTS ABOUT THE BRAND’S GROWTH, RESULTING IN LOSSES AND DAMAGES.
The Domino’s Lawsuit cites that during the company’s investor day in 2023, executives discussed long-term guidance for the company…
But failed to mention the severe challenges the brand was facing that would’ve made achieving the guidance and new goals unlikely. These obstacles included issues with closing and opening stores.
Where does Domino’s stand in this lawsuit?
While the accusations are severe, the company is confident that it can crush the suit in court. In a statement made to Business Insider, a company spokesperson stated…
“WE BELIEVE THIS SUIT IS TOTALLY WITHOUT MERIT AND PLAN TO VIGOROUSLY DEFEND IT,”
As for the company’s growth as stated in the lawsuit, Domino’s is doing well for itself. In July, the brand’s financial report revealed revenues increased 7.1% to $73 million…
Which is an increase from the same period in 2023.
What Lies Ahead For The Company?
While the company seems to be doing well for itself…
Especially following an insanely successful ‘free pizza’ marketing campaign.
But even Domino’s can’t outrun lawsuits…
Let’s hope that the company’s confidence isn’t unfounded.
Be Great,
GCTV Staff
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