Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Fairway Group Holdings Corp.
WILMINGTON, Del.--(BUSINESS WIRE)--Rigrodsky & Long, P.A.:
- Do you, or did you, own shares of Fairway Group Holdings Corp. (NASDAQ GM: FWM)?
- Did you purchase your shares between April 16, 2013 and February 6, 2014, inclusive?
- Did you lose money in your investment in Fairway Group Holdings Corp.?
- Do you want to discuss your rights?
Rigrodsky & Long, P.A., including former Special Assistant United States Attorney, Timothy J. MacFall, announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of Fairway Group Holdings Corp. (“Fairway” or the “Company”) (NASDAQ GM: FWM) between April 16, 2013 and February 6, 2014, inclusive, including those investors who acquired Fairway shares pursuant or traceable to its initial public offering (“IPO”) commenced on April 17, 2013 (collectively, the “Class Period”), alleging violations of the Securities Act of 1933 and the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Fairway during the Class Period and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to email@example.com; or at: http://www.rigrodskylong.com/investigations/fairway-group-holdings-corp-fwm.
Fairway is a high-growth food retailer offering customers a differentiated one-stop shopping experience “Like No Other Market”. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) Fairway’s same store sales were declining; (2) the Company’s direct store expenses were increasing; (3) the Company’s financial forecasts were wholly unrealistic; and (4) as a result of the foregoing, Fairway’s public statements were materially false and misleading at all relevant times. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on February 6, 2014, Fairway reported earnings that severely missed analysts’ estimates including very disappointing same store sales, as well as increased direct store expenses. Moreover, the Company reported a colossal miss in EBITDA growth for the third quarter as EBITDA grew 3/2% over the same period in the prior year compared to growth of “20% - 25%” that management had predicted. Additionally, the Company announced the retirement of its Chief Executive Officer, Herbert Ruetsch, ten months after the Company’s IPO.
On this news, shares in Fairway plummeted almost 29%, closing at $8.12 per share on February 7, 2014, on heavy trading volume of over 5.5 million shares.
If you wish to serve as lead plaintiff, you must move the Court no later than April 15, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.
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