HARTFORD, Conn., March 14, 2008 (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 Middle District of Florida on behalf of all persons who purchased the common stock of Darden Restaurants Inc. ("Darden" or the "Company")(NYSE:DRI) between June 19, 2007 and December 18, 2007 (the "Class Period").
The Complaint charges that Darden and certain of its officers and directors violated federal securities laws. Specifically, the Complaint alleges that Defendants issued materially false and misleading statements that misrepresented and failed to disclose: (i) that the Company's core restaurants, such as Olive Garden, Red Lobster and LongHorn, were underperforming and same-store sales were experiencing negative trends; (ii) that the Company was experiencing rising food costs which were above internal expectations; and (iii) that, as a result of the forgoing, the defendants had no reasonable basis for their positive statements about the Company's prospects and guidance for fiscal 2008.
On December 18, 2007, Darden announced its financial results for the fiscal second quarter of 2008, the period ended November 25, 2007. For the quarter, the Company reported net earnings from continuing operations of $44.1 million, or $0.30 per diluted share, and sales of $1.52 billion. Moreover, the Company dramatically reduced its diluted net earnings per share growth for fiscal 2008 from 10-12% to 7-9%. On this news, shares of the Company's stock fell $7.68 per share -- or over 21%, to close at $28.39 per share.
If you are a member of the class, you may, no later than May 12, 2008, 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.
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@snilaw.com, or visit our website: www.snilaw.com.