Growth Club
1851 Growth Club
Class-Action Suit Filed to Block Zoes Kitchen-Cava Merger
The lawsuit filed by Zoes Kitchen shareholders alleges multiple SEC violations in Cava’s acquisition of the brand.
A shareholder filed a class-action suit against Zoes Kitchen in a Delaware federal court to block the brand’s pending merger with Cava, claiming several Securities and Exchange Commission violations were committed in the acquisition.
According to an article in Restaurant Business Magazine, the suit alleges the Mediterranean fast-casual chain distributed “incomplete and misleading” information to shareholders surrounding the Cava deal and asks that the merger agreement is rescinded.
The $300 million deal between Cava and Zoes Kitchen was announced in August and is expected to close near the end of the year.
Read the full story here.
