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Choice Hotels International Inc (NYSE: CHH) Investor Securities Class Action Lawsuit 04/11/2007

  • If you purchased shares of Choice Hotels International Inc (NYSE: CHH), you might have certain options and should contact the Shareholders Foundation, Inc.

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Lawsuit Overview

Case Dismissed
Company
Choice Hotels International
Security
NYSE: CHH

Case Name
Choice Hotels International Shareholder Class Action Lawsuit 04/11/2007
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the District of Colorado

Class Period Begin
Class Period End
Deadline To File for Lead
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Summary

August 15, 2008 - The parties filed a stipulation of voluntary dismissal. The court granted the stipulation and dismissed the case.
April 2, 2008 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

March 24, 2008 - The case was transferred to the U.S. District Court for the District of Maryland.

June 22, 2007 - Lead plaintiff motion was filed.

May 11, 2007 - Cases were consolidated.

April 20, 2007 - Another investor filed a complaint.

April 11, 2007 - An investor in shares of Choice Hotels International Inc (NYSE: CHH) filed a lawsuit in the U.S. District Court for the District of Colorado over alleged violations of Federal Securities Laws by Choice Hotels International Inc in connection with certain allegedly false and misleading statements made between April 25, 2006 and July 26, 2006.

The complaint charges Choice Hotels International Inc and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Choice Hotels International Inc, along with its subsidiaries, operates as a hotel franchisor worldwide. It franchises lodging properties under the Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, Cambria Suites, and Flag Hotels brand names. According to the complaint, Defendants issued a series of materially false and misleading statements concerning Choice Hotels International Inc, its business, operations and prospects. Unbeknownst to shareholders, the true facts were that Choice Hotels International Inc (NYSE: CHH) was experiencing a dramatic decrease in the number of new hotel franchise contracts such that it was not meeting internal expectations and would report slowing growth in this important business segment. Moreover, Choice Hotels International Inc (NYSE: CHH) was experiencing declining growth in its conversion of hotels to its system. Prior to the disclosure of the true facts about Choice Hotels International Inc, Choice Hotels International Inc insiders sold more than $16 million dollars of their personally-held shares to the unsuspecting public. On July 25, 2006, after the markets closed, Choice Hotels International Inc (NYSE: CHH) revised their earnings guidance for 2006 downward and reported slowing new franchise growth and reduced hotel conversions. Upon this announcement, the price of Choice Hotels International Inc (NYSE: CHH) common stock fell $13.30 per share, or approximately 23%, to close at $45.55 per share, on heavy trading volume.