Australia’s Domino’s claims class action over ‘misleading’ comments in Japan market Reuters

(Reuters) – Australian pizza chain Domino’s Pizza (NYSE: ) Enterprises said on Monday it had received a shareholder class action that includes an allegation that it engaged in misleading or deceptive conduct over its expected performance in Japan.

The company’s shares fell 2.5 percent to $29.18, their lowest level since late August.

The proceedings were filed by Australian legal consultancy Echo Law on behalf of Domino’s shareholders, who acquired their interest in the firm by filing confirmation of the share swap between 18 August 2021 and 3 November 2021.

Echo Law said on its website that the class action was related to an announcement by Domino’s made on November 3, 2021.

Echo Law did not immediately respond to a Reuters request for further comment.

In a November 2021 trading update, Domino’s said its Japanese operations posted “excellent combined sales” and added that new store openings in the country continued to remain strong.

“As a result of structural changes in marketing, pricing and store penetration, current sales and customer numbers remain significantly higher than the corresponding period prior to COVID,” the pizza chain said in 2021.

Domino’s shares had hit a more than nine-year low in July after analysts cut their earnings outlook for the company after it decided to close low-volume stores in both Japan and France.