Shareholders Foundation, Inc.

Fairway Group Holdings Corp (NASDAQ:FWM) Investor Alert: Lawsuit Alleges False and Misleading Statements

A lawsuit was filed on behalf of investors in Fairway Group Holdings Corp (NASDAQ:FWM) shares over alleged securities laws violations. NASDAQ:FWM investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com

 
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San Diego, CA -- (SBWIRE) -- 04/28/2014 -- An investor, who purchased shares of Fairway Group Holdings Corp (NASDAQ:FWM), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Fairway Group Holdings Corp in connection with certain allegedly false and misleading statements made between April 16, 2013 and February 6, 2014.

If you purchased shares of Fairway Group Holdings Corp (NASDAQ:FWM), you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554

According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Fairway Group Holdings Corp (NASDAQ:FWM) between16, 2013 and February 6, 2014, that Fairway Group Holdings Corp 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 Corp's same store sales were declining, that Fairway Group Holdings Corp’s direct store expenses were increasing, that Fairway Group Holdings Corp’s financial forecasts were wholly unrealistic, and that as a result of the foregoing, Fairway Group Holdings Corp's public statements were materially false and misleading at all relevant times.

Fairway Group Holdings Corp 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 Corp (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 Corp reported its fiscal 2014 third quarter results. Among other things, Fairway Group Holdings Corp 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 Corp (NASDAQ:FWM) declined from over $11 per share on February 6, 2014, to $7.36 per share on February 14, 2014.

Those who purchased shares of Fairway Group Holdings Corp (NASDAQ:FWM) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com