More than 50 franchisees and their financial backers are now suing Tex-Mex chain Moe’s Southwest Grill LLC and its former parent company over allegations of fraud and breach of contract.
A lawsuit filed last week in federal court in Atlanta by 34 plaintiffs makes many of the same claims as a lawsuit filed by nearly two dozen plaintiffs in late March.
Robert Casey, an attorney representing both groups of plaintiffs, said Tuesday that it will be up to a judge whether to consolidate the cases.
A settlement isn’t likely anytime soon, he said.
“We would always entertain that, but there’s not been any discussions thus far in that regard,” Casey said.
Moe’s attorney, John Dienelt, said he just learned about the new complaint Tuesday and has not had a chance to read it. He declined to comment, except to say that arbitration is an alternative the chain may wish to pursue.
Among other things, the franchisees allege in the lawsuits that the chain improperly took advertising dollars from them and failed to give money to a charity that the chain collected.
The lawsuits accuse Moe’s and its Atlanta-based parent company, Raving Brands Inc., of fraud, breach of contract, racketeering and other offenses. They seek unspecified damages. No trial dates have been set.
No comments yet.