According to the complaint, Ignite, headquartered in Houston Texas, together with its subsidiaries, engages in restaurant business. As of July 15, 2011, it owned and operated 117 restaurants under Joe's Crab Shack brand and 17 restaurants under Brick House Tavern+Tap brand in 32 states.
In the Company's IPO on May 10, 2012, 5,769,231 of the Company's common stock were priced at $14.00/share for total proceeds of over $80 million. On May 11, 2012, trading in the Company's shares opened at $16.85/share.
The complaint alleges that the registration statement and prospectus, which included the Company's financial results in dating back to 2007, contained misstatements of material fact. Namely, the registration statements and prospectus contained material errors relating to the Company's accounting treatment of leases since nearly the Company's inception.
On July 18, 2012, Ignite issued an announcement admitting that the Company's
previously issued financial statements, including those included in the IPO offering documents, contained material errors and had to be restated. This announcement shocked the market and caused the price of Ignite stock to drop $3.91/share to 20.5% to $15.15/share.
On October 22, 2012, the Court issued an Order appointing the lead plaintiff and approving the selection of lead counsel. On December 6, lead plaintiffs filed the First Amended Complaint.
On September 3, 2013, the Court issued an Order granting the Defendant's Motion to Dismiss without prejudice. Plaintiffs were given leave to file an Amended Complaint. Plaintiffs filed their Amended Complaint on September 18th.
On January 7, 2014, the Court issued an Order denying the Defendants' Motions to Dismiss.
On January 23, 2015, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on January 30. On June 5, 2015, the Court granted final approval of the Settlement and dismissed this case.