El Pollo Loco Secures Dismissal of Securities Action

Skadden won a motion to dismiss a putative securities class action brought against firm clients El Pollo Loco Holdings, Inc. (EPL), Trimaran Capital Partners, Freeman Spogli & Co. and other individual defendants. The complaint alleged that EPL misled investors regarding its ability to meet its comparable store sales projections and the causes of lighter-than-expected comparable store sales growth. Judge David O. Carter of the U.S. District Court for the Central District of California rejected the plaintiffs' claims and dismissed the complaint without prejudice, finding that the plaintiffs had failed to plead a materially false or misleading statement and failed to plead scienter.