NEW YORK, Feb. 19, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased or otherwise acquired the common stock of Fairway Group Holdings Corp. ("Fairway" or the "Company") (Nasdaq:FWM) pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with Fairway's April 17, 2013 initial public stock offering (the "IPO").
The Complaint alleges that the Registration Statement failed to disclose and/or misrepresented the following adverse facts, among others, which existed at the time of IPO: (i) that the Company's operating and management structure were not capable of effectively running its expanding business; (ii) that the Company had millions of dollars of redundant costs built into its budget; (iii) that competitive pricing pressure from grocery chains like Whole Foods and Trader Joe's was negatively impacting same store sales trends and profit margins; and (iv) that the terms of a new store lease in the Chelsea section of Manhattan, were not financially viable.
Following the disclosure of multiple quarters of disappointing financial results following the IPO, several of the underwriters downgraded the Company's stock ratings and at the time of the filing of this lawsuit, Fairway stock was trading at under $8 per share, a decline of more than 37% from the IPO price of $13.00 per share.
If you wish to serve as lead plaintiff, you must move the Court no later than April 15, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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