NEW YORK, May 7 /PRNewswire/ -- Dreier LLP (http://www.dreierllp.com/) announces that a class action lawsuit was commenced in the United States District Court for the District of Colorado, on behalf of purchasers of the common stock of Choice Hotels International, Inc. ("Choice Hotels" or the "Company") during the period April 25, 2006 through July 26, 2006, inclusive (the "Class Period"). The complaint alleges violations of the federal securities laws, including Section 10(b) of the Securities Exchange Act of 1934.
If you purchased Choice Hotels common stock during the Class Period, you may be a member of the proposed Class. You must move the Court on or before June 11, 2007 if you wish to serve as a lead plaintiff. Lead plaintiffs must meet certain legal requirements. If you have acquired Choice Hotels common stock and want to discuss your legal rights, please contact Lee A. Weiss (
Choice Hotels operates as a hotel franchisor worldwide, franchising such brand names as Comfort Inn, Comfort Suites, Econo Lodge, and Clarion. The Complaint alleges that during the Class Period, defendants misled investors concerning the rate at which the Company was entering into new hotel franchise agreements. Prior to the disclosure of the true facts about the Company, Company insiders sold more than $16 million of their personally-held shares to the unsuspecting public. On July 25, 2006, Choice Hotels shocked the market by revising its earnings guidance for 2006 downward and reporting slowing new franchise growth. In response to this announcement, on July 26, 2006, Choice Hotels common stock fell $14.65 per share, or approximately 25%, to close at $44.20 per share, on unusually heavy trading volume.
Dreier LLP's Class Action Litigation Group has vast experience representing domestic and foreign institutional and individual investors in securities and other class actions throughout the country. The partners who head Dreier LLP's Class Action Litigation Group have successfully prosecuted securities fraud class actions in a wide variety of industries and have played a significant role in cases that have resulted in some of the largest securities class action settlements. Prior results do not guarantee a similar outcome.
