A law firm recently announced that it is investigating claims of securities law violations of a food retailer on behalf of shareholders. Depending on the outcome of the process, there may be a securities class action lawsuit in the future.
The law office of Bronstein, Gewirtz and Grossman, LLC, noted it will look into allegations against Fairway Group Holding Corp. This is because the company released its fourth quarter financial statement on Feb. 6, 2014, which noted that it had a net loss of $0.74 per share. This was more than the initial estimate of $0.70 per share that analysts initially thought. When this was announced, the company's stock dropped nearly 30 percent to $8.12 per share.
Fairway Group Holding also announced that the company will have its CEO retire, while its fourth quarter sales fell 1.7 percent. The latter was due to multiple reasons including a shorter holiday shopping period. Another reason was the effects of Hurricane Sandy the previous year, the company had a significant stock increase before and after the storm.
Any shareholders who are interested in learning more about this investigation, or they have information that could facilitate the process, should speak with the law firm. The best people to speak with are Eitan Kimelman and Peretz Bronstein, and both can be reached by telephone or email. Those who choose to write an email should also leave their telephone number and mailing address.
Further investigation starts
Another law office noted it will seek to learn information about allegations surrounding Fairway Holding Corp., which also may become a class action claim in the future.
Kahn Swick and Foti, LLC, will be investigating the claims surrounding the company, due to the firm's stock fluctuation and performance. The law firm explained that the initial price of the stock before the announcement of the fourth quarter performance was $11.43 per share. It is possible that the company's leaders may have violated federal securities laws, and the investigation aims to determine whether or not this occurred.
The law firm is also available to speak with shareholders who have questions about the case, as well as those who have information to help the investigation along. Speaking to Lewis Kahn and Melinda Nicholson is best, and both can be contacted by telephone or email.