INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP HAS FILED A SHAREHOLDER CLASS ACTION AGAINST CHOICE HOTELS INTERNATIONAL, INC.-CHH
New York, NY April 16, 2007 - Murray, Frank & Sailer LLP has filed a class action on behalf of shareholders who purchased or otherwise acquired the securities of Choice Hotels International, Inc. (“Choice Hotels” the “Company”) (NYSE: CHH) between April 25, 2006 to July 26, 2006, inclusive, (the "Class Period").
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The complaint charges Choice Hotels and certain of its officers and directors with violations of the Exchange Act. The Company, along with its subsidiaries, operates as a hotel franchisor worldwide. It franchises lodging properties under the Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, Cambria Suites, and Flag Hotels brand names. According to the complaint, Defendants issued a series of materially false and misleading statements concerning Choice Hotels, its business, operations and prospects. Unbeknownst to shareholders, the true facts were that the Company was experiencing a dramatic decrease in the number of new hotel franchise contracts such that it was not meeting internal expectations and would report slowing growth in this important business segment. Moreover, the Company was experiencing declining growth in its conversion of hotels to its system. Prior to the disclosure of the true facts about the Company, Company insiders sold more than $16 million dollars of their personally-held shares to the unsuspecting public. On July 25, 2006, after the markets closed, Choice Hotels revised their earnings guidance for 2006 downward and reported slowing new franchise growth and reduced hotel conversions. Upon this announcement, the price of Choice Hotels common stock fell $13.30 per share, or approximately 23%, to close at $45.55 per share, on heavy trading volume.
If you are a member of the class, you may, no later than June 11, 2007, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative, chosen by the Court, who acts on behalf of other class members in directing the litigation.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You may visit our website at www.murrayfrank.com. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]