Buca, 4 directors sued in wake of SEC investigation

Nation's Restaurant News, April 18, 2005

MINNEAPOLIS -- Buca Inc., operator or franchisor of 107 Buca di Beppo and Vinny T's of Boston restaurants, and four directors were named defendants in a shareholder-filed "derivative action" lawsuit in Hennepin County, Minn., District Court.

The company and board members were charged with breach of fiduciary duties for allegedly failing to correct or prevent problems with accounting and internal controls.

Securities regulators are investigating Buca for potential lawbreaking involving disclosure and controls issues. Buca's parent recently fired two of its senior officers after finding accounting irregularities.

Separately, Buca named Richard Erstad general counsel and secretary. He is an attorney with Faegre & Benson LLP here, specializing in corporate and securities law.