ATLANTA BBAC LLC, the investor group that plans to buy Back Yard Burgers in a $38 million deal, has extended to Oct. 31 the expiration of its committed financing with Regions Bank and Harbert Mezzanine Partners II LLC. BBAC said it wants to investigate claims made in a lawsuit filed against the chain, according to materials filed Tuesday with the U.S. Securities and Exchange Commission.
BBAC, based here, said in the filing that Back Yard Burgers had settled the lawsuit last month. Terms were not disclosed.
The class-action lawsuit had accused Back Yard Burgers of violating the federal Fair and Accurate Credit Transactions Act and the Tennessee Consumer Protection Act, both of which require that all but a few digits of a customer's credit card number be masked on the receipt. The suit, Plank v. Back Yard Burgers Inc., did not allege that the plaintiff suffered any actual damages related to transactions at a Back Yard outlet.
The lawsuit was filed Aug. 3, the same day that Back Yard Burgers shareholders approved the $6.50-per-share buyout by BBAC, an investor group led by Steve Lynn, a former chairman and CEO of Shoney's Inc. and Sonic Corp. The buying group also includes Reid M. Zeising, managing partner of Cherokee Advisors LLC, the investment company that manages the consortium, and Pharos Capital Group LLC, a financial advisory concern.
Memphis, Tenn.-based Back Yard Burgers operates or franchises some 181 restaurants in 20 states.