Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has
Been Filed Against Fairway Group Holdings Corp.
WILMINGTON, Del. -- February 28, 2014
Rigrodsky & Long, P.A.:
*Do you, or did you, own shares of Fairway Group Holdings Corp. (NASDAQ GM:
*Did you purchase your shares between April 16, 2013 and February 6, 2014,
*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 firstname.lastname@example.org; or at:
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.
Attorney advertising. Prior results do not guarantee a similar outcome.
Rigrodsky & Long, P.A.
Timothy J. MacFall, Esquire
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