This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Attention Fairway Group Holdings Corp. Investors: Fairway Group Misled Investors According To A Recently Filed Class Action

SAN DIEGO and NEW YORK, Feb. 18, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Fairway Group Holdings Corp. (NASDAQ: FWM) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York.  The complaint alleges that the company and certain of its officers and directors violated the Securities and Exchange Act of 1934 between April 16, 2013 and February 6, 2014 (the "Class Period").  Fairway Group, together with its subsidiaries, operates food retail stores in the Greater New York metropolitan area.  

(Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

Fairway Group Is Accused of Misrepresenting Its Financial Status

According to the complaint, shares of Fairway Group fell $3.31 or nearly 29% to close at $8.12 on February 7, 2014, following the release of Fairway Group's third quarter 2014 financial results, in which the company disclosed declining same store sales and increased direct store expenses. Further, despite previously predicting an EBIDTA growth of 20%-25%, Fairway Group reported a mere 3.2% EBIDTA growth for the third quarter 2014 over the same quarter compared to the year prior. The February 6, 2014 announcement of the company's disappointing financial results was coupled with the disclosure that the company's Chief Executive Officer, Herbert Ruetsch would be leaving his position. 

The complaint also alleges that Fairway Group made materially false and misleading statements regarding the company's business, operational, and compliance policies. Specifically, Fairway failed to disclose that: (i) the company's same store sales were declining; and (ii) its direct store expenses were increasing; (iii) Fairway's financial forecasts were wholly unrealistic.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs