El Pollo Loco Beats Derivative Suit Over Insider Trading Probe

July 30, 2021, 8:39 PM

El Pollo Loco Holdings Inc. defeated a shareholder derivative suit challenging the findings of an internal investigation into insider trading allegations against some of the chicken restaurant’s board members.

The company’s special litigation committee conducted the investigation in good faith and with independence, the Delaware Chancery Court ruled Friday, dismissing the case.

Shareholder Kevin Diep alleged that several of El Pollo Loco’s directors, and its private equity owner Trimaran Pollo Partners LLC, breached their fiduciary duty when conducting a block trade shortly after the company’s 2015 initial public offering.

Diep said company insiders sold more than $130 million worth of ...

To read the full article log in. To learn more about a subscription click here.