Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against Red Robin Gourmet Burgers, Inc.

If you wish to serve as lead plaintiff, you must move the Court nolater than 60 days from today. If you wish to discuss this action orhave any questions concerning this notice or your rights or interests,please contact plaintiff's counsel, William Lerach or Darren Robbinsof Lerach Coughlin at 800/449-4900 or 619/231-1058, or via e-mail atwsl@lerachlaw.com. If you are a member of this class, you can view acopy of the complaint as filed or join this class action online athttp://www.lerachlaw.com/cases/redrobin/. Any member of the purportedclass may move the Court to serve as lead plaintiff through counsel oftheir choice, or may choose to do nothing and remain an absent classmember.

The complaint charges Red Robin and certain of its officers anddirectors with violations of the Securities Exchange Act of 1934. RedRobin, together with its subsidiaries, operates a casual diningrestaurant chain that serves gourmet burgers in the United States andCanada.

The complaint alleges that during the Class Period, defendantscaused Red Robin's shares to trade at artificially inflated levels byissuing a series of materially false and misleading statementsregarding the Company's business and prospects and by concealingimproper self dealing by the Company's CEO. This caused the Company'sstock to trade as high as $62.38 per share. Defendants took advantageof this inflation, selling or otherwise disposing of 320,000 shares oftheir Red Robin stock then valued at more than $17 million. On August11, 2005, Red Robin reported that Q2 2005 results would be worse thanexpectations due to charges and adjustments to various accounts andthat its Chairman, President and CEO had resigned in light of aninvestigation into his personal use of Company assets. On this news,Red Robin's stock collapsed to as low as $44.13 per share beforeclosing at $45.55 per share on volume of 9.8 million shares.

According to the complaint, the true facts, which were known byeach of the defendants but concealed from the investing public duringthe Class Period, were as follows: (a) the Company lacked requisiteinternal controls and corporate governance procedures to safeguard theCompany from abuse by the CEO of his position at the Company; (b)contrary to defendants' claims of fiscal 2005 growth andprofitability, the Company was actually on track for lower resultsthan represented; (c) the Company lacked the necessary personnel toissue accurate financial reports and projections; and (d) as a resultof (a)-(c) above, the Company's projections for fiscal year 2005 weregrossly inflated.

Plaintiff seeks to recover damages on behalf of all purchasers ofRed Robin common stock during the Class Period (the "Class"). Theplaintiff is represented by Lerach Coughlin, which has expertise inprosecuting investor class actions and extensive experience in actionsinvolving financial fraud.

Lerach Coughlin, a 150-lawyer firm with offices in San Diego, SanFrancisco, Los Angeles, New York, Boca Raton, Washington, D.C.,Houston, Philadelphia and Seattle, is active in major litigationspending in federal and state courts throughout the United States andhas taken a leading role in many important actions on behalf ofdefrauded investors, consumers, and companies, as well as victims ofhuman rights violations. Lerach Coughlin lawyers have been responsiblefor more than $20 billion in aggregate recoveries. The Lerach CoughlinWeb site (http://www.lerachlaw.com) has more information about thefirm.