The lawsuit, filed by the firm Hagens Berman, centers on the period between the company's September 2025 IPO and May 12, 2026. According to the complaint, management championed a "concentric circle" growth model to investors while allegedly withholding data that new store density was actively eroding sales at established high-volume sites. By the time the suit was filed on June 18, 2026, the company’s stock price had fallen to $7.72, representing a decline of more than 61% from its IPO price.
Reed Kathrein, a partner at Hagens Berman, stated that the investigation aims to pinpoint exactly when leadership became aware of the revenue erosion and failed to disclose the impact on same-store growth. The firm is also encouraging whistleblowers with non-public information to come forward, noting that the SEC whistleblower program may offer financial incentives for original information leading to a successful recovery.
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