According to the Complaint, The Habit Restaurants, Inc. is a fast-casual restaurant concept that specializes in preparing fresh, made-to-order chargrilled burgers and sandwiches. The Company has over 270 restaurants, including locations in thirteen states throughout California, Arizona, Utah, New Jersey, Florida, Idaho, Virginia, Nevada, Washington, Maryland, Pennsylvania, North Carolina, and South Carolina, as well as seven international
This action stems from a proposed transaction announced on January 6, 2020, pursuant to which The Habit Restaurants, Inc. will be acquired by YUM! Brands, Inc.
On January 5, 2020, Habit’s Board of Directors caused the Company to enter into an agreement and plan of merger with YUM! Brands. Pursuant to the terms of the Merger Agreement, Habit’s stockholders will receive $14.00 in cash for each share of Habit common stock they own.
On February 4, 2020, Defendants filed a proxy statement with the United States Securities and Exchange Commission in connection with the Proposed Transaction. The Complaint alleges that the Proxy Statement omits material information with respect to the Proposed Transaction, which renders the Proxy Statement false and misleading.