Domino's shares fall on shareholder class action
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More news: Shares in Domino's Pizza Enterprises lowered at the start of trading on the ASX after the pizza chain was served with a shareholder class action.
Domino's shares were down 2.2% to $29.27 by 10:55am AEST. The company's shares have lost more than 50% in value since January, resulting in its removal from the ASX 100 Index from next week.
Domino's served with shareholder class action
The news: Domino's Pizza Enterprises has been served with a shareholder class action, filed in the Federal Court of Australia, including allegations that the pizza chain engaged in misleading or deceptive conduct and breached disclosure obligations.
The context: The proceeding has been filed by Echo Law on behalf of Domino's shareholders who acquired an interest in the company by entering into equity swap confirmations between 18 August 2021 and 3 November 2021.
The proceeding includes allegations that Domino's engaged in misleading or deceptive conduct and breached its disclosure obligations in relation to the company's performance in the Japanese market.
In July, Domino's outlined plans to close low-volume stores in Japan and France, following a year-long strategic review. The chain opened more than 400 stores in Japan between FY20 and FY23, but announced the closure of 80 stores this year, partially offset by the opening of more than 20 new stores in higher-potential locations in the country.
Domino's said it denies any liability and will defend the proceeding.
The source: ASX announcement
