Bronstein, Gewirtz & Grossman, LLC Announces Investigation of Ignite Restaurant Group, Inc.July 20, 2012 By: Nightclub and Bar
Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of the securities of Ignite Restaurant, Inc. ("Ignite Restaurant" or the "Company") (NasdaqGS: IRG), concerning whether the company and certain of its officers and directors have violated federal securities laws. The investigation focuses on allegations that certain statements issued by the Company regarding the Company's business, operations and financial condition were false and misleading.
On July 19, 2012, shares of Ignite Restaurant fell $3.82 or 20% and traded at $15.24 in morning trading after announcing the need to correct non-cash related errors related to its accounting treatment of certain leases. As a follow-up to this review, the Company is also commencing a detailed review of its historical accounting for fixed assets and related depreciation expense in prior periods as a private company. Following the completion of the accounting review, the Company, with the concurrence of its independent registered public accounting firm, PricewaterhouseCoopers LLP, will restate its previously issued financial statements for years 2009 through 2011 and for the first quarter of 2012. The lease accounting errors have been preliminarily quantified by the Company and date back to 2006. The Company estimates that the aggregate pre-tax effect of the lease accounting related restatement items from 2006 through the first quarter of 2012 will range from $3.4 to $3.8 million