LOS ANGELES–(BUSINESS WIRE)–The Law Offices of Frank R. Cruz announces an investigation of The Cheesecake Factory Incorporated (“Cheesecake Factory” or the “Company”) (NASDAQ: CAKE) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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In the early stages of the COVID-19 pandemic, on March 23, 2020 and April 3, 2020, the Company disclosed that its restaurants were “operating sustainably.” In fact, Cheesecake Factory was losing around $6 million per week, which it did not disclose to investors. The Company also failed to disclose to investors that it had informed landlords that it would be impossible to pay rent in April due to the COVID-19 pandemic.
On December 4, 2020, the Company stated that it will pay a $125,000 fine to settle charges with the U.S. Securities and Exchange Commission’s (“SEC”) for making misleading statements.
On this news, the Company’s stock price fell $0.81 per share, or 2%, to close at $38.62 per share on December 4, 2020, thereby injuring investors.
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If you purchased Cheesecake Factory securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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