Australia's Domino's served with class action on 'misleading' Japan market comments (updated)

Dominos Pizza Enterprises

09/09/2024 03:31

(Updates with further details and background from paragraph 3)
       Sept 9 (Reuters) - Australian pizza chain Domino's Pizza
Enterprises  DMP.AX  said on Monday that it has been served a
shareholder class action, which includes an allegation that it
engaged in misleading or deceptive conduct around its expected
performance in Japan. 
    The company's shares fell 2.5% to A$29.18 to hit their
lowest since late August. 
    The proceeding has been filed by Australian legal
consultancy company Echo Law on behalf of Domino's shareholders
who scooped an interest in the firm by entering equity swap
confirmation between Aug. 18, 2021 and Nov. 3, 2021. 
    Echo Law on its website said the class action was in
relation to a Domino's announcement made on Nov. 3, 2021.
    Echo Law did not immediately respond to a Reuters request
for additional comments.
    Domino's in a trading update in Nov. 2021 said its Japan
operations recorded "excellent compounding 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 counts remain
materially higher than corresponding period pre-COVID," the
pizza chain had said in 2021.
    Domino's shares had hit more than a nine-year low in July
after analysts slashed their earnings outlook for the firm after
it decided to close low-volume stores in both Japan and France.

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by
Mrigank Dhaniwala)
 ((Rishav.Chatterjee@thomsonreuters.com;))