Domino’s Pizza Enterprises shares dropped 2.8% to A$29.1 after the company faced a shareholder class action. The legal firm Echo Law filed the lawsuit, claiming that in 2021, Domino’s misled investors regarding expected performance in the Japanese market.

The company announced that it would defend itself in court, denying any liability. The lawsuit was filed on behalf of shareholders who acquired stakes through equity swaps between August 18 and November 3, 2021.

On November 3, 2021, Domino’s reported “excellent sales” in the Japanese market, stating that new store growth remained strong. However, this year, the company closed low-profit stores in Japan and France, leading to lower profit forecasts and the stock reaching a nine-year low.