Fairway Parent Facing Class Action Suits
Several class action lawsuits have been filed against Fairway Group Holdings Corp., parent company of upscale New York, N.Y.-based Fairway Market.
Firms such as Holzer & Holzer, LLC, Levi & Korsinsky, Glancy Binkow & Goldberg, and Pomerantz LLP, among others, are initiating the class action suits on behalf of investors who purchased Fairway Group Holdings Corp. common stock between April 16, 2013 and Feb. 6, 2014.
The complaints allege that Fairway misled investors regarding its same store sales and expenses, and allegedly issued misleading financial forecasts during the timeframe.
The suit filed by Holzer & Holzer was initiated after the Feb. 6, 2014, release of Fairway’s financial results and news that its chief executive officer, Herbert Ruetsch, is retiring after 15 years with the company.
The class action lawsuit filed against the company by Pomerantz, meanwhile alleges that throughout the class period, defendants made false and/or misleading statements and/or failed to disclose that: (a) Fairway's same store sales were declining; (b) the company's direct store expenses were increasing; (c) the company's financial forecasts were wholly unrealistic; and (d) as a result of the foregoing, Fairway's public statements were materially false and misleading at all relevant times.
Fairway Market has established itself as a leading food retailing destination in the New York City metro area. Its stores emphasize an extensive selection of fresh, natural and organic products, prepared foods and specialty and gourmet offerings, along with a full assortment of conventional groceries.