Fairway Group Holdings receives class action lawsuit

securities class action claim was recently filed against a food retailer by the company's shareholders.

Law office Robbins Arroyo, LLP, noted that it filed a lawsuit in the U.S. District Court for the Southern District of New York against Fairway Group Holdings Corp., for those stockholders who purchased interests during the class period between April 16, 2013, and Feb. 6, 2013. This was due to shareholders' allegations that the company violated the Securities and Exchange Act of 1934.

On Feb. 6, 2014, the company released its financial results for the third quarter. This noted that same store sales were on the decline, while direct store expenses rose. Fairway Group Holdings also explained that its earnings before interest, taxes, depreciation and amortization was just 3.2 percent, notably lower than the 20 percent to 25 percent that was initially projected. The company also announced that its CEO would be leaving his post.

Once shareholders learned of this information, the company's shares dropped approximately $3.31 to $8.12 per share on Feb. 7, 2014. That was a decline of nearly 30 percent.

Fairway Group Holdings' leadership was also alleged to have made a number of statements that were either misleading or false to shareholders regarding the business practices and other company aspects. These included the lack of information about sales drops, expense rises and inaccurate financial projections.

It is possible to learn more about this lawsuit as well as how it will affect shareholder rights by speaking to the law firm. Darnell Donahue is available to field questions, and he can be reached by telephone or email. Shareholders who want to read more about the situation can check the law firm's website.

Second lawsuit filed
Another law firm noted its intention to take the case to court on behalf of shareholders.

Law office Holzer and Holzer filed a class action lawsuit in the same district court against Fairway Group Holdings' board of directors. This was for the same class period, and covered many of the same issues.

It is possible for shareholders to also speak with this firm, as long as they purchased interests in the company during the aforementioned class period. The best person to speak with regarding legal rights is Marshall Dees, who can be reached by telephone or email.