Update in Lawsuit for Investors in Ruby Tuesday, Inc. (NYSE:RT) shares announced by Shareholders Foundation

SAN DIEGO, April 20, 2016 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit is pending in Tennessee on behalf of certain purchasers of shares of Ruby Tuesday, Inc. (NYSE:RT) over alleged Securities Laws Violations by Ruby Tuesday.
 
Investors who have losses in excess of $100,000 from their investment between April 10, 2013 and July 24, 2013 in shares of Ruby Tuesday, Inc. (NYSE:RT),

OR

Investors who purchased shares of Ruby Tuesday, Inc. (NYSE:RT) on April 2013 or earlier and currently hold any of those shares,  have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The lawsuit was initially filed in May 2014 and the plaintiff alleged that the defendants violated Federal Securities Laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the plaintiff claimed that Ruby Tuesday issued allegedly materially false and misleading statements regarding its financial performance and future prospects and failed to disclose the following adverse facts: that changes made to the menu at Ruby Tuesday, Inc.’s flagship Ruby Tuesday chain to increase the range of offerings and price points were negatively impacting sales, as the average sales check price was declining without contemporaneous increases in traffic, that contrary to the reported progress being made in a turnaround effort, same-store sales were continuing to decline exponentially at the Company’s flagship Ruby Tuesday chain, that the Company had experienced a dramatic decline in sales at its Lime Fresh Grill restaurants, and as a result, the carrying value of that chain’s goodwill, trademark and properties and equipment was materially impaired, that the Company’s expenses and losses were being materially understated, that the value of the Company’s deferred tax assets were overstated, and that based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company’s business. In December 2014 a consolidated complaint was filed and in March 2016 the court denied in part the defendant’s motion to dismiss the case.

Those who have losses in excess of $100,000 from their investment between April 10, 2013 and July 24, 2013 in shares of Ruby Tuesday, Inc. (NYSE:RT), or those who purchased NYSE:RT shares in April 2013 or earlier and currently hold any of those shares, have certain options and should contact the Shareholders Foundation.

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.