NEW YORK, Aug. 18, 2005 (PRIMEZONE) -- The Rosen Law Firm (http://www.rosenlegal.com) announced today that a class action has been commenced in the United States District Court for the District of Colorado on behalf of purchasers of Red Robin Gourmet Burgers, Inc. ("Red Robin") (Nasdaq:RRGB) common stock during the period between November 8, 2004 and August 11, 2005 (the "Class Period"). To join the Red Robin securities litigation as a plaintiff or for further information, please call Laurence Rosen, Esq. toll-free at 866-767-3653 or email lrosen@rosenlegal.com. You can join the class action online at http://www.rosenlegal.com.
A class action lawsuit has already been filed on behalf of Red Robin shareholders. If you wish to serve as lead plaintiff, you must move the Court no later than 57 days from today. If you wish to join the litigation or to discuss your rights or interests regarding this class action, please contact plaintiff's counsel, Laurence Rosen, Esq. of The Rosen Law Firm toll free at 866-767-3653 or via e-mail at lrosen@rosenlegal.com.
The complaint charges Red Robin and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Red Robin, together with its subsidiaries, operates a casual dining restaurant chain that serves gourmet burgers in the United States and Canada.
The complaint alleges that during the Class Period, defendants caused Red Robin's shares to trade at artificially inflated levels by issuing a series of materially false and misleading statements regarding the Company's business and prospects and by concealing improper self-dealing by the Company's CEO. This caused the Company's stock to trade as high as $62.38 per share. Defendants took advantage of this inflation, selling or otherwise disposing of 320,000 shares of their Red Robin stock then valued at more than $17 million. On August 11, 2005, Red Robin reported that Q2 2005 results would be worse than expectations due to charges and adjustments to various accounts and that its chairman, president, and CEO had resigned in light of an investigation into his personal use of Company assets. On this news, Red Robin's stock collapsed to as low as $44.13 per share before closing at $45.55 per share on volume of 9.8 million shares.
The Rosen Law Firm http://www.rosenlegal.com has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud. The Rosen Law Firm represents investors throughout the nation, concentrating its practice in securities class actions.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.