Fred's Inc. (FRED - Get Report) is still suffering.

On Friday, May 25, the S&P Dow Jones Indices announced changes to the S&P SmallCap 600.

Fred's will be replaced by GameStop Corp. (GME - Get Report) . 

The announcement comes after Fred's lost three boardmembers on Friday. The company is also being investigated by Glancy Prongay & Murray LLP, a Los Angeles based law firm. The firm is investigating whether Fred's is in violation of federal securities laws and is representing Fred's investors.

When the market closed, Fred's was down 8%.