| Company: | Choice Hotels International, Inc. |
| Ticker Symbol: | NYSE: CHH |
| Class Period: | April 25, 2006 to July 26, 2006 |
| Date Filed: | Apr-17-07 |
| Lead Plaintiff Deadline: | Jun-11-07 |
| Court: | District, CO |
| Allegations: |
A shareholder class action was recently filed in the United States District Court for the District of Colorado against Choice Hotels International, Inc. and certain of its senior officers. The lawsuit was filed on behalf of all persons who purchased the publicly-traded securities of Choice Hotels International, Inc. (NYSE:CHH) between April 25, 2006 and July 26, 2006, inclusive ("Class Members")
The complaint charges Choice Hotels and certain of its officers and directors with violations of the Exchange Act. The Company, 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, its business, operations and prospects. Unbeknownst to shareholders, the true facts were that the Company 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, the Company was experiencing declining growth in its conversion of hotels to its system. Prior to the disclosure of the true facts about the Company, Company 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 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 common stock fell $13.30 per share, or approximately 23%, to close at $45.55 per share, on heavy trading volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges Choice Hotels and certain of its officers and directors with violations of the Exchange Act. The Company, 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, its business, operations and prospects. Unbeknownst to shareholders, the true facts were that the Company 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, the Company was experiencing declining growth in its conversion of hotels to its system. Prior to the disclosure of the true facts about the Company, Company 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 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 common stock fell $13.30 per share, or approximately 23%, to close at $45.55 per share, on heavy trading volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
