Boston, MA 02/27/2014 (wallstreetpr) – Ruby Tuesday, Inc. (NYSE:RT) officers and directors are being investigated by shareholders rights law firm Johnson & Weaver LLP on claims they might have violated state and federal laws. Ruby Tuesday with its subsidiary develop and operate a chain of casual dining and restaurants across the US Guam and Internationally.
Claims to be investigated
The investigations will be based on statements that Ruby Tuesday issued between April 10, 2013 and July 24, 2013. The investigation will try to unravel whether certain Kinder Morgan Energy Partners officers and directors at ruby violated fiduciary duties causing damage to the company and its shareholders. It is being claimed that the statements issued during the period of this time might have been wrong or false especially regarding the company’s operations business valuation and prospects.
Financial results raising concerns
Ruby Tuesday, Inc. (NYSE:RT) had reported that its total revenue rose to over $1.31 billion for the 53 weeks that ended on June 5 2012 up from $1.26 billion reported on May 31 2011. As a result of the positive news, the company’s stock rose from lows of $6.03 a share to highs of $9.79 as of July 18, 2013.
Later after issuing the above results on July 24, 2013 Ruby Tuesday, Inc. (NYSE:RT) reported in its fourth quarter a report that showed its revenue declined from over $1.31 billion for the 53 weeks as of June 5, 2012 to over $1.25 billion for the 52 weeks that ended on June 4, 2013 and that its net loss increased to highs of $39.41 million from $0.19 million. This news caused Ruby Tuesday stock to drop by highs of 14% the next day trading session, July 25, 2013
The news on possible fiduciary laws violation seem not to have had any effect on Ruby Tuesday, Inc. (NYSE:RT) Tuesday during the Thursday trading session. Ruby Tuesday was unchanged slightly moving up by 0.84% to close at a high of $6.01.
