HARTFORD, Conn., April 12, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Colorado on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Choice Hotels International, Inc. ("Choice" or the "Company") (NYSE:CHH) between April 25, 2006 and July 26, 2006, inclusive, (the "Class Period").
The Complaint alleges that Choice Hotels International, a franchiser of lodging properties under the Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, Cambria Suites, and Flag Hotels brand names, and certain of its officers and directors violated Federal Securities laws. Specifically, defendants issued a series of materially false and misleading statements concerning Choice Hotels, its business, operations and prospects. Unbeknownst to shareholders, the Company was experiencing a dramatic decrease in the number of new hotel franchise contracts such that it was not meeting internal expectations and would report slowing growth in this important business segment. Moreover, the Company was experiencing declining growth in its conversion of hotels to its system. Prior to the disclosure of the true facts about the Company, Choice insiders sold more than $16 million dollars of their personally-held shares. On July 25, 2006, after the markets closed, Choice revised their earnings guidance for 2006 downward and reported slowing new franchise growth and reduced hotel conversions. On this news, the price of Choice Hotels common stock fell $13.30 per share, or approximately 23%, to close at $45.55 per share.
If you are a member of the class, you may, no later than June 11, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard, P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snilaw.com.