Business

Dunkin’ seeks escape from hot water

The parent of the Dunkin’ Donuts chain will ask a state judge this week to dismiss a class action racial discrimination case because it was filed too late.

In court papers filed in a New Jersey courthouse, Dunkin’ Brands claims the suit filed by two former franchisees this summer came after the statute of limitations on alleged racial discrimination had passed.

The franchisees claim the publicly traded Canton, Mass.-based company steered them to undesirable locations because of their race.

Reggie and Amy Pretto, who are African-American and used to own stores in Baltimore and Washington, DC, claim Dunkin’ executives made “false representations regarding the unavailability” of stores in better locations.

Priti Shetty, who is Indian, has made similar accusations.

In court papers, Dunkin’ argues that at least some of the alleged steering to less profitable stores in the Prettos case occurred as far back as seven years ago and should be “time-barred.”

As for Shetty’s claims, they should be tossed “because they relate to and arise from alleged racial steering that occurred prior to her opening franchises in 2004 and 2005 and discriminatory treatment while a Dunkin’ franchisee between 2004 and 2010,” lawyers for the company said.

The coffee and donuts chain also argues that both plaintiffs signed agreements that would release Dunkin’ from any future claims.

Jerry Marks, the lawyer representing both the Prettos and Shetty, said his clients believe the statute of limitations should be extended on “the basis of cases where you have ongoing racial discriminatory conduct.”

A company spokeswoman declined to comment.

Dunkin’ stock is up nearly 29 percent over the past 12 months, and closed Friday at $31.66, down 1.2 percent.