Crash Landing; Rewards Network's legal problem is unsettling for investors.(sales and earnings of Rewards Network Inc. )
Byline: ALBY GALLUN
A California lawsuit is turning up the heat on a local company that gives diners discounts through its loyalty program. And investors are getting out of the kitchen.
Closing Friday at $4.02, shares of Rewards Network Inc. have dropped by more than half since a federal judge ruled last month that the company charged illegally high rates to California restaurants that used its frequent-dining program.
The ruling creates "an incredible cloud over the company's business model,'' says Robert Damron, an analyst at 21st Century Equity Research in Milwaukee.
Chicago-based Rewards Network won't comment on the class-action suit, …
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