Company News : Macy’s named in securities lawsuit

Macy’s Inc. was named a defendant in a lawsuit alleging securities law violations and seeking class action status.

The suit was filed in U.S. District Court for the Southern District of New York by the law firm Lerach Coughlin Stoia Geller Rudman & Robbins LLP and seeks to represent shareholders who acquired shares between Feb. 8 and May 15.

The complaint, which was announced by the law firm Monday, alleges that Macy’s and certain of its officers and directors caused the company’s stock price to become artificially inflated during the period by concealing that the May Department Stores integration was actually failing, that sales growth was diminishing and that the company’s business had deteriorated. As a results, the suit claimed, Macy’s‘ sales projections were grossly overstated.

A Macy’s spokesman declined to comment on the lawsuit.

Shares of Macy’s slipped 16 cents to close at $40.07 Tuesday on the New York Stock Exchange. The retailer is based in Cincinnati.

“Shareholders of the owner of the Outback Steakhouse restaurant brand on Tuesday voted to approve a sweetened $3.2 billion takeover offer from a private investor group.

In the proposed deal, the buyout group including Bain Capital Partners LLC and investment funds affiliated with Catterton Management Co. LLC will pay $41.15 a share in cash for OSI Restaurant Partners Inc.

The vote on the $41.15 per-share offer — sweetened from an original offer of $40 per share — was supposed to take place May 8, but the meeting was delayed. Then, a May 25 special meeting was adjourned to again allow shareholders more time to review the revised deal. The deal is expected to close on about June 19.

“Burger King Corp. said Tuesday thousands of its restaurants in the United States and Canada will now be open until midnight or later every day, allowing it to challenge competitors McDonald’s and Wendy’s.

In May, about 60 percent of Burger King’s U.S. and Canadian restaurants were opening until midnight or later. But Tuesday’s national rollout allows the world’s second-largest hamburger chain to mount a full-fledged ad campaign touting the change.

The idea will be featured in a new advertising campaign featuring hip-hop music mogul Sean “Diddy” Combs.

Burger King competes with No. 1 chain McDonald’s Corp., which offers 24-hour drivethrus at some restaurants, and No. 3 chain Wendy’s International Inc., which implemented extended hours years ago.