El Pollo Loco Securities Settlement
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WELCOME TO THE EL POLLO LOCO SECURITIES LITIGATION SETTLEMENT WEBSITE

This website has been established to provide general information related to the proposed settlement of the lawsuit known as Daniel Turocy, et al. v. El Pollo Loco Holdings, Inc., et al., Case No. 8:15-cv-01343-DOC-KES (the "Litigation"), pending before the United States District Court for the Central District of California, Southern Division (the “Court”). The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the Stipulation of Settlement dated April 3, 2019, which can be found and downloaded by clicking on the Case Documents tab above.

The entities that lead the Litigation, Peter Kim, Dr. Richard J. Levy, Sammy Tanner and Ron Huston, are collectively referred to as the “Lead Plaintiffs.” The company, individuals and entities, El Pollo Loco Holdings, Inc. ("El Pollo Loco" or the "Company"), Trimaran Capital Partners, Trimaran Pollo Partners, L.L.C., Freeman Spogli & Co., Stephen J. Sather, Laurance Roberts and Edward J. Valle, being sued are called the Defendants.  The Defendants, collectively with the Lead Plaintiffs are known as the “Settling Parties.”

The Court appointed the law firms of Robbins Geller Rudman & Dowd LLP and The Rosen Law Firm, P.A. as Lead Counsel to represent Class Members.  

WHAT IS THIS LAWSUIT ABOUT?

This Litigation arises under Sections 10(b), 20(a) and 20A of the Securities Exchange Act of 1934, and alleges that during the period between May 15, 2015 and August 13, 2015, inclusive (the “Class Period”), Defendants El Pollo Loco, Trimaran Capital Partners, Trimaran Pollo Partners, L.L.C., Freeman Spogli & Co., Stephen J. Sather, Laurance Roberts, and Edward J. Valle made, or caused to be made, materially false and misleading statements about the effect rising costs would have on the Company’s bottom line. More specifically, Lead Plaintiffs allege that during the Class Period, Defendants misled investors regarding whether increased costs, and hence increased menu prices, would negatively affect its level of transactions and same store sales growth.

Lead Plaintiffs allege that during the Class Period, Defendants knew or recklessly disregarded that by increasing prices they had turned away customers, thereby substantially reducing same store sales growth. Lead Plaintiffs allege that Defendants concealed these facts from investors and that this scheme artificially inflated El Pollo Loco Securities during the Class Period. Lead Plaintiffs allege that on August 13, 2015, El Pollo Loco announced lower than expected transactions and same store sales growth due to higher prices. El Pollo Loco’s stock price declined to $14.56 per share at the close of trading on August 14, 2015, down 20% from the previous day’s closing price.

Defendants have vigorously denied and continue to deny each and all of the claims alleged by Lead Plaintiffs in the Litigation. Defendants expressly have denied and continue to deny all charges of wrongdoing or liability against them arising out of any of the conduct, statements, acts or omissions alleged, or that could have been alleged, in the Litigation. Defendants also have denied and continue to deny, among other things, the allegations that Lead Plaintiffs or the Class have suffered any damage or that Lead Plaintiffs or the Class were harmed by the conduct alleged in the Litigation. Defendants have concluded that further defense of the Litigation would be protracted and expensive, and that it is desirable that the Litigation be fully and finally settled in the manner and upon the terms and conditions set forth in the Stipulation.

The Class includes all persons and entities who purchased or otherwise acquired El Pollo Loco common stock or exchange-traded call options, or who sold exchange-traded El Pollo Loco put options, between May 15, 2015 and August 13, 2015, inclusive, and were damaged thereby. Excluded from the Class are Defendants, present or former executive officers of El Pollo Loco and their immediate family members. Also excluded from the Class are those Persons who timely and validly request exclusion pursuant to the requirements described in the Notice of Pendency and Settlement of Class Action (the "Notice").

WHAT DOES THE SETTLEMENT PROVIDE?

Defendants have agreed to pay $20,000,000 in cash (the "Settlement Amount") into escrow for the benefit of the Class. The balance of this fund after payment of Court-approved attorneys’ fees and expenses and the costs of claims administration, including the costs of printing and mailing the Notice and the cost of publishing newspaper notice (the “Net Settlement Fund”), will be divided among all eligible Class Members who send in valid Claim Forms.

At this time, it is not possible to make any final determination of how much individual Class Members may receive from the Settlement. Lead Plaintiffs have proposed a plan for allocating the Net Settlement Fund to those Class Members who timely submit valid Claim Forms. The Plan of Allocation proposed by Lead Plaintiffs is set in the Notice and can be found by clicking on the Case Documents tab above.

Although the information in this website is intended to assist you, it does not replace the information contained in the relevant case documents found on the Case Documents tab above. We recommend that you read the relevant case documents carefully and in their entirety.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

DO NOTHING Receive no payment pursuant to this Settlement.  Remain a Class Member.  Give up your rights.
REMAIN A MEMBER OF THE CLASS AND SUBMIT A CLAIM FORM This is the only way to be potentially eligible to receive a payment.
EXCLUDE YOURSELF FROM THE CLASS (OPT OUT) BY SUBMITTING A WRITTEN REQUEST FOR EXCLUSION Receive no payment pursuant to this Settlement.  This is the only option that allows you to ever potentially be part of any other lawsuit against any of the Defendants or the other Released Defendant Parties concerning the Released Plaintiffs’ Claims.
OBJECT TO THE SETTLEMENT Write to the Court if you have any objections to the fairness of the Settlement, the request for attorneys’ fees and expenses, the requested award to Lead Plaintiffs in connection with their representation of the Class, or the proposed Plan of Allocation.
 GO TO THE HEARING AND FILE A NOTICE OF INTENTION TO APPEAR Ask to speak in Court about the fairness of the Settlement, the proposed Plan of Allocation, the request for attorneys’ fees and litigation expenses, or the requested award to Lead Plaintiffs.

IMPORTANT DATES AND DEADLINES

Submit a Claim Form August 6, 2019
Submit Objection and Notice of Intention to Appear July 31, 2019
Submit Written Request  for Exclusion July 31, 2019
Settlement Hearing  August 21, 2019, at 8:30 a.m.