#United States #Securities Class Action #Wilmington #Settlement #Carrols Restaurant Group

Proposed Settlement in Carrols Restaurant Group Securities Class Action

In a noteworthy development, prominent law firms Labaton Keller Sucharow LLP, Andrews & Springer LLC, and Bernstein Litowitz Berger & Grossmann LLP have announced a proposed settlement related to a class action lawsuit involving Carrols Restaurant Group, Inc. The lawsuit has been pending in the Court of Chancery of the State of Delaware, and it pertains to the interests of registered holders and beneficial owners of Carrols common stock.

Background

The legal actions stemmed from the acquisition of Carrols Restaurant Group by Restaurant Brands International Inc. Shareholders who held Carrols' common stock received $9.55 per share at the time of the acquisition closure on May 16, 2024. The lawsuit, designated as C.A. No. 2024-1030-JTL, has made significant progress, leading to a proposed settlement designed to resolve the claims associated with the case.

Proposed Settlement Details

The proposed settlement amount reaches $18,200,000 in cash, which aims to benefit all stakeholders involved in the class action. The settlement, if sanctioned by the court, promises to resolve all claims presented in the action. Both the plaintiffs, including the Plymouth County Retirement Association, Scott Hamparian, Emad Tadros, and Zeiad Tadros, and the defendants, comprising Restaurant Brands International Inc., Matthew Perelman, and Alexander Sloane, have come together to reach this settlement.

The Court has scheduled a Settlement Hearing for November 23, 2026, where key determinations will be made. This includes whether the action may be maintained as a non-opt-out class action, if the plaintiffs can be appointed as representatives for the class, and whether the settlement terms are deemed fair and reasonable by the court.

Who is Affected?

All registered holders and beneficial owners of Carrols common stock—including heirs, assigns, transferees, and successors-in-interest—who experienced the financial effects of this acquisition are included in this class settlement. However, certain persons and entities are specifically excluded from being part of the class by definition. To clarify eligibility and the specific terms of the settlement, shareholders can access more information through the dedicated webpage: www.CarrolsStockholdersLitigation.com.

Shareholder Actions

Eligible class members are entitled to share in the Net Settlement Fund, which will be distributed on a pro rata basis. All eligible members will receive compensation without needing to submit a claim form. The payment amount for each eligible class member will be calculated based on their shares held at the time of the merger.

The court has outlined a clear procedure for class members wishing to submit objections concerning the settlement, the plan of allocation, or any requests for attorneys' fees, among other aspects. All objections must be submitted by November 9, 2026.

Conclusion

This proposed settlement marks a pivotal moment for investors involved with Carrols Restaurant Group. With a significant cash settlement on the table, shareholders are encouraged to be aware of their rights and the forthcoming hearing which could finalize these resolutions. Stakeholders seeking additional insights or specific inquiries regarding the settlement can reach out to the Settlement Administrator or the respective legal counsel involved.

As this case continues to progress, it serves as an important reminder of the legal complexities involved in shareholder rights and corporate transactions.