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El Pollo Loco Holdings, Inc. Announces Notice of Pendency of Derivative Action, Proposed Partial Settlement of Derivative Action, Settlement Hearing and Right to Appear
COSTA MESA, Calif., May 28, 2021 (GLOBE NEWSWIRE) -- The following is being released by El Pollo Loco Holdings, Inc. (NASDAQ: LOCO) pursuant to an order of
About this update from El Pollo Loco Holdings, Inc.
[{"type":"text","content":"COSTA MESA, Calif., May 28, 2021 (GLOBE NEWSWIRE) -- The following is being released by El Pollo Loco Holdings, Inc. (NASDAQ: LOCO) pursuant to an order of the Court of Chancery of the State of Delaware. IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE KEVIN DIEP, derivatively on behalf of EL POLLO LOCO HOLDINGS, INC., Plaintiff, v.C.A. No. 12760-CM STEPHEN J. SATHER, LAURANCE ROBERTS, EDWARD J. VALLE, KAY BOGEAJIS, DOUGLAS K. AMMERMAN, SAMUEL N. BORGESE, and TRIMARAN POLLO PARTNERS, L.L.C., Defendants, and EL POLLO LOCO HOLDINGS, INC., Nominal Defendant. NOTICE OF PENDENCY OF DERIVATIVE ACTION, PROPOSED PARTIAL SETTLEMENT OF DERIVATIVE ACTION,SETTLEMENT HEARING AND RIGHT TO APPEAR TO: ALL OWNERS OF EL POLLO LOCO HOLDINGS, INC., (“EL POLLO LOCO,” OR THE “COMPANY”) COMMON STOCK (TICKER SYMBOL: LOCO) AS OF APRIL 22, 2021, WHO CONTINUE TO OWN SUCH SHARES THROUGH THE DATE OF THE SETTLEMENT HEARING (“CURRENT EL POLLO LOCO STOCKHOLDERS”). PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY. THIS NOTICE RELATES TO A PROPOSED SETTLEMENT AND DISMISSAL OF STOCKHOLDER DERIVATIVE LITIGATION AND CONTAINS IMPORTANT INFORMATION REGARDING YOUR RIGHTS. IF THE COURT APPROVES THE PROPOSED SETTLEMENT, YOU WILL BE FOREVER BARRED FROM CONTESTING THE FAIRNESS OF THE PROPOSED SETTLEMENT OR PURSUING THE RELEASED PLAINTIFF’S CLAIMS AGAINST THE RELEASED DEFENDANT PERSONS. This Notice relates to a proposed partial settlement (the “Settlement”) of the above-captioned, derivative action (the “Action”), pending in the Court of Chancery of the State of Delaware (the “Court”), which was brought by an El Pollo Loco stockholder on behalf of El Pollo Loco. Subject to the approval of the Court, the proposed Settlement will resolve all claims brought, or that could have been brought, against the Settling Defendants. The complete terms of the Settlement, which remains subject to approval of the Court, are set forth in the Stipulation and Agreement of Compromise and Settlement, dated April 22, 2021 (the “Stipulation”),1 entered into by and among: (i) plaintiff Kevin Diep (“Plaintiff”), derivatively on behalf of El Pollo Loco; and (ii) defendants Kay Bogeajis, Laurance Roberts, Stephen J. Sather, Edward J. Valle, Douglas K. Ammerman, and Samuel N. Borgese (collectively, the “Settling Defendants,” and together with Plaintiff, the “Settling Parties”).2 Because the Act...