Bread’s characterization of Sobeys’ termination statements stand in contrast to the complaint’s allegation that Sobeys “unequivocally informed ADS in January 2021” that it was terminating its contract.
Bread also said certain of its statements cited in the complaint were inactionable “rosy affirmation commonly heard from corporate managers and numbingly familiar to the marketplace,” citing 2011 precedent from the same judicial district regarding corporate puffery.
Among other things, Bread also claimed Loyalty Ventures properly highlighted relevant risks in its registration statement—a filing that Bread noted it was not responsible for. Bread further pointed out that the complaint cites certain events that occurred outside its proposed class period.
Newtyn Partners seeks to hold Bread Financial, Andretta, and two Loyalty Ventures executives, Charles J. Horn and John J. Chesnut, liable for its losses.
Horn and Chesnut also sought to see the claims they face dismissed with prejudice in a separate Friday filing, arguing that their company’s disclosures made clear that “Loyalty faced significant challenges to retain sponsors.”
