The litigation, spearheaded by Faruqi & Faruqi, LLP, centers on claims that the company’s executive leadership misrepresented the impact of its aggressive growth model. According to the complaint, the firm’s new store openings were actively cannibalizing revenue from existing locations—a phenomenon known as “sales transfer”—which management allegedly downplayed to investors. The lawsuit contends that these omissions rendered positive projections about the company's business operations materially misleading.
Eligible investors include those who acquired Class A common stock traceable to the September 2025 registration statement or those who purchased shares between September 12, 2025, and May 12, 2026. While the court will appoint a lead plaintiff to oversee the case, shareholders are not required to take affirmative action to remain part of the class. Those interested in pursuing the lead plaintiff role or discussing their legal rights are encouraged to contact partner Josh Wilson at 877-247-4292 or 212-983-9330.
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