NEW YORK, Jan. 7, 2020 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of The Habit Restaurants, Inc. ("HABT" or the "Company") (NASDAQ: HABT) in connection with the proposed acquisition of the Company by Yum! Brands, Inc. (NYSE: YUM) ("Yum!") Under the terms of the acquisition agreement, HABT shareholders will receive $14.00 for each share they own.
If you own HABT shares and wish to discuss this investigation or have any questions concerning this notice or your rights or interests, visit our website:
Or please contact:
Joshua Rubin, Esq.
1500 Broadway, 16th Floor
New York, NY 10036
WeissLaw is investigating whether HABT's Board acted to maximize shareholder value prior to entering into the acquisition agreement. Notably, the per-share offer price is $0.16 less than HABT's 52-week high of $14.16. Additionally, according to the CEO of Yum! David Gibbs, "[a]s a fast-casual concept with strong unit economics, [HABT] is a fantastic addition to the Yum! family and has significant untapped growth potential in the U.S. and internationally." Mr. Gibbs further underscored the benefits of the deal by highlighting that the transaction allows Yum! "to offer an exciting new investment to [its] franchisees."
Moreover, the Company announced positive financial results in the third quarter of 2019. It reported total revenue of $117.3 million, representing an increase of 12.1% year-over-year when compared to the $104.6 million reported in the same period of the previous year. Finally, in October, the Company also reported its sixth consecutive quarter of company-operated comparable sales growth.
Given these facts, WeissLaw is concerned whether the proposed acquisition undervalues the Company, and whether all material information related to the proposed acquisition is fully and fairly disclosed.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at email@example.com.
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SOURCE WeissLaw LLP