According to the law firm press release, Fairway Group Holdings Corp. and its subsidiaries operate in the retail food industry, selling fresh, natural and organic products, prepared foods and hard to find specialty and gourmet offerings along with a full assortment of conventional groceries.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose 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.
On February 6, 2014, Fairway reported earnings that severely missed analysts' estimates including disappointing same store sales, as well as increased direct store expenses. Moreover, the Company reported a substantial miss in EBIDTA growth for the third quarter, as EBIDTA grew 3.2% over the same period in the prior year compared to growth of 20% - 25% that management had forecast.
On this news, shares of Fairway fell $3.19 per share, more than 27.91%, on intraday trading, to a price of $8.24 on February 7, 2014.
On June 3, 2014, the Court issued an Order appointing lead plaintiff, approving the selection of lead counsel, and consolidating all related actions. Lead Plaintiffs filed an amended complaint on September 4.
A second amended complaint was filed on April 21, 2015.
On September 9, 2015, the Court issued an Order granting defendants' motions to dismiss and closing this case.