Hooters Affiliate Lied About $10M Pre-IPO Audit, Suit Claims

Law360, New York (October 15, 2012, 6:18 PM EDT) -- A Hooters franchisee that owns restaurants in South Africa falsely told shareholders its financial statements were audited before an ill-fated $10.1 million public stock offering, the investors claim in a class action filed Friday in Florida federal court.

Chanticleer Holdings Inc., which operates four Hooters restaurants in South Africa and one in Australia, made false statements about audits of its South African operations in documents filed with the U.S. Securities and Exchange Commission as part of the June 21 initial public offering, according to the complaint...
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