The Forbes Article
Updated March 11, 2021
In January 2020, our attorney provided MTY, Cold Stone and Kahala with notice of whistleblower allegations. On February 13, 2020, their attorney responded stating, the website included inaccurate portrayals and warned of potential consequences resulting from its publication, but specifically declined to identify any false or misleading statements. MTY announced the allegations on February 14, 2020 and its stock plummeted. MTY, Lefebvre and O’Connor’s false statements on February 24, 2020 claiming the allegations were reported by an MTY “active employee”, were previously “dealt with” and are “baseless” therefore meets the TSX definition of a “misleading news release”.
On March 9, 2020, Forbes published an article titled “MTY’s Delayed Earnings Call Leaves Analysts Baffled With Few Answers On ‘Whistleblower’ Claims” which called MTY, Lefebvre and O’Connor’s truthfulness into question. MTY’s stock again plummeted.
In addition to the Forbes article, securities and franchise investors should read the details of MTY’s efforts to cover up the allegations and MTY, Lefebvre and O’Connor’s false statements.