In the Middle District of North Carolina, a Connecticut law firm has filed a complaint seeking class action status on behalf of Krispy Kreme investors from August 21, 2001 through May 7, 2004. The suit alleges that Krispy Kreme misled investors by failing to disclose that the low-carb, low-fat trends negatively affected store performance and that new store sales dropped off dramatically after the grand opening. The suit also claimed that Krispy Kreme's strategy of shipping product to supermarkets failed because it saturated the market and cannibalized store sales.
Posted by franchiselawblog at May 17, 2004 11:41 AM