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Ignite Restaurant Group

A class action lawsuit alleges Ignite Restaurant Group made false statements in its IPO prospectus regarding lease accounting, causing stock prices to drop.

Opening soonUnited States-wideClaim deadline: Pending court decisionEstimated payout: Compensation pendingClaims not open yet

About this settlement

Allegations of false financial statements in Ignite Restaurant Group's IPO prospectus due to improper lease accounting.

A class action lawsuit was filed against Ignite Restaurant Group, Inc. (IRG) alleging false statements in its prospectus for the May 10, 2012 IPO. The complaint claims IRG improperly accounted for leases, leading to financial restatements and a significant drop in share price. The company announced it would restate financial statements for 2009-2011 and Q1 2012 due to accounting errors on leases. Ignite estimates the pre-tax effect of these restatements from 2006 through Q1 2012 to be between $3.4 and $3.8 million. The IPO raised $81 million.

Who qualifies

  • Investors who purchased Ignite Restaurant Group securities in connection with the May 10, 2012 IPO.
  • Exact eligibility will be determined during the claims process.

Compensation pending

Claim deadline: Pending court decision

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