This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fairway Group Holdings Shareholder Alert: Former SEC Attorney Willie Briscoe And Powers Taylor Investigate Possible Breaches Of Fiduciary Duty By Officers And Directors

Stocks in this article: FWM

Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor LLP announce that a federal class action lawsuit has been filed against Fairway Group Holdings Corp. (“Fairway” or “Company”) (NasdaqGM: FWM) and several of its officers and directors in connection with Fairway’s April 17, 2013 initial public stock offering (“IPO”) Registration Statement.

If you are an affected Fairway shareholder and want to learn more about the lawsuit or join the action, contact Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 239-4568, or via email at, or Patrick Powers at Powers Taylor LLP, toll free (877) 728-9607, or via email at There is no cost or fee to you.

The complaint alleges Defendants violated the Securities Exchange Act of 1934 by misrepresenting and/or failing to disclose that (i) Although Fairway’s operations had expanded exponentially, the founders’ families continued to maintain significant operational control and had not allowed the required structural changes to its operations or management structure necessary to support its growth; (ii) Due to the lack of structural or operational changes Fairway had millions of dollars of redundant costs; (iii) Despite the Registration statement’s description, Fairway’s CEO would suddenly and without explanation resign less than one year following the IPO without a replacement, or a CEO succession plan in place, causing the stock price to plummet while Fairway scrambled to locate a CEO; (iv) Even though Fairway was increasing its absolute sales dollars through new store openings, sales at its stores open at least a full year were actually in decline at the time of the IPO; (v) As the shift from small family-run stores into a larger, corporate grocery store chain occurred, Fairway began to feel competitive pricing pressure from other “organic” and “fresh” food grocery chains, running down the higher prices it had once been able to maintain as well as its profit margins; (vi) Due to pre-Super Storm Sandy sales, Fairway’s 2012 sales had been significantly enhanced, which was not something Fairway was on track to replicate in 2013; and (vii) In February 2013 Fairway had signed a 20-year lease, in a space that had experienced significant turn-over, at an inordinately high rent of $150 a square foot, very close to its competitors, which would destine this new store to drain the Company’s financial results as its projected sales would not support its higher operational costs. According to the complaint, when the truth was revealed to the market, Fairway stock plummeted approximately 37% from the IPO price.

1 of 2

Select the service that is right for you!

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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