Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/fairway/)
today announced that a class action has been commenced in the United
States District Court for the Southern District of New York on behalf of
all purchasers of the common stock of Fairway Group Holdings Corp.
("Fairway" or the "Company") (NASDAQ:FWM) pursuant and/or traceable to
the Registration Statement issued in connection with Fairway's April 17,
2013 initial public stock offering (the "IPO"), seeking to pursue
remedies under the Securities Act of 1933 (the "Securities Act").
If you wish to serve as lead plaintiff, you must move the Court no later
than 60 days from February 14, 2014. If you wish to discuss this action
or have any questions concerning this notice or your rights or
interests, please contact plaintiff's counsel, Samuel
H. Rudman or David
A. Rosenfeld of Robbins Gellr at 800-449-4900 or 619-231-1058, or
via e-mail at firstname.lastname@example.org. If
you are a member of this class, you can view a copy of the complaint as
filed or join this class action online at http://www.rgrdlaw.com/cases/fairway/.
Any member of the putative class may move the Court to serve as lead
plaintiff through counsel of their choice, or may choose to do nothing
and remain an absent class member.
The complaint charges Fairway, certain of its officers and directors and
the underwriters of the IPO with violations of the Securities Act.
Fairway was founded in 1933 and is headquartered in New York, New York.
The Company, together with its subsidiaries, operates food retail stores
in twelve locations in New York, New Jersey and Connecticut. At the time
of the IPO, the Company had adopted an expansion plan it was then
implementing to open hundreds of new stores to expand the Fairway chain
to 300 stores nationwide.
On or about September 24, 2012, Fairway filed with the SEC a
Registration Statement on Form S-1, which would later be utilized for
the IPO following several amendments in response to comments by the SEC.
The complaint alleges that the Registration Statement, and the documents
referenced and incorporated therein, was negligently prepared and, as a
result, contained untrue statements of material facts or omitted to
state other facts necessary to make the statements made not misleading,
and was not prepared in accordance with the rules and regulations
governing its preparation. Specifically, 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.
Plaintiff seeks to recover damages on behalf of all purchasers of
Fairway common stock pursuant or traceable to the Company's April 17,
2013 IPO (the "Class"). The plaintiff is represented by Robbins Geller,
which has expertise in prosecuting investor class actions and extensive
experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors
in contingency-based securities and corporate litigation. With nearly
200 lawyers in ten offices, the firm represents hundreds of public and
multi-employer pension funds with combined assets under management in
excess of $2 trillion. The firm has obtained many of the largest
recoveries and has been ranked number one in the number of shareholder
class action recoveries in MSCI's Top SCAS 50 every year since
2003. Please visit http://www.rgrdlaw.com
for more information.
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