Fairway Group Holdings Corporation (NASDAQ: FWM) Investor Securities Class Action Lawsuit 02/14/2014

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Company Name(s): 
Fairway Group Holdings
Case Name: 
Fairway Group Holdings Shareholder Class Action Lawsuit 02/14/2014
Case Status: 
Case Dismissed
Affected Securities
NASDAQ: FWM
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/14/2014
Class Period Begin: 
04/16/2013
Class Period End: 
02/06/2014
Class Period Begin: 
04/17/2013
Class Period End: 
02/07/2014
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
04/15/2014
Case Dismissed: 
09/09/2015
Summary: 

September 9, 2015 - The court granted defendants motions to dismiss and closed the case.

May 21, 2015 - Defendants filed motions to dismiss.

April 21, 2015 - The lead plaintiff filed a second amended consolidated complaint.

March 25, 2015 - The court denied defendants' motions to dismiss.

September 5, 2014 - Defendants filed motions to dismiss.

September 4, 2014 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased FWM common shares between April 17, 2013 and February 7, 2014. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 between April 17, 2013 and February 7, 2014.

June 3, 2014 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

February 18, 2014 - Another investor filed a lawsuit on behalf of investors who purchased Fairway Group Holdings Corporation common shares between April 17, 2013 and February 14, 2014. The plaintiff alleges that the defendants violated the Securities Act of 1933 by issuing false and misleading statements between April 17, 2013 to February 14, 2014.

February 14, 2014 - An investor in shares of Fairway Group Holdings Corporation (NASDAQ: FWM) filed a lawsuit in the U.S. District Court for the Southern District of New York against Fairway Group Holdings Corporation over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between April 16, 2013 and February 6, 2014.

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Fairway Group Holdings Corporation (NASDAQ: FWM) between April 16, 2013 and February 6, 2014, that Fairway Group Holdings Corporation and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.

More specifically, the plaintiff claims that the defendants made allegedly false and/or misleading statements and/or failed to disclose that Fairway Group Holdings Corporation's same store sales were declining, that Fairway Group Holdings Corporation’s direct store expenses were increasing, that Fairway Group Holdings Corporation’s financial forecasts were wholly unrealistic, and that as a result of the foregoing, Fairway Group Holdings Corporation's public statements were materially false and misleading at all relevant times.

Fairway Group Holdings Corporation reported that its Total Revenue rose from $401.17 million for the 52 weeks period that ended on March 28, 2010 to $661.24 million for the 52 weeks period that ended on March 31, 2013, while its Net Loss over the respective timer periods increased from $7.09 million to $62.87 million.

Shares of Fairway Group Holdings Corporation (NASDAQ: FWM) declined from $28.31 per share in July 2013 to $11.10 per share on February 5, 2014.

Then on February 6, 2014, Fairway Group Holdings Corporation reported its fiscal 2014 third quarter results. Among other things, Fairway Group Holdings Corporation disclosed that it had a net loss of 74 cents per share.

According to the investigation, the 74 cents per share net loss is a bigger loss than the 70-cent per share loss analysts expected and revenue of only $205.7 million was $2 million less than analysts expected.

Shares of Fairway Group Holdings Corporation (NASDAQ: FWM) declined from over $11 per share on February 6, 2014, to $7.36 per share on February 14, 2014.