Bond investors left in the dark over O’Charley’shepatitis A outbreaks

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Investors are asking questions of a $125 million high-yield bond issue from restaurant chain O’Charley’s after the offering prospectus failed to notify potential investors that a second outbreak of hepatitis A had occurred.

An initial outbreak of hepatitis A, which originated from contaminated Mexican green onions, hit an O’Charley’s restaurant in Knoxville, Tennessee, affecting over 80 people in September this year. This led to at least 14 lawsuits being brought against the restaurant chain

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