PHILADELPHIA, Feb. 19, 2014 (GLOBE NEWSWIRE) -- Law Offices Bernard M. Gross, P.C. 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 those who purchased the securities of Fairway (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").
If you wish to discuss this action, serve as lead plaintiff or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross at 866-561-3600 or 215-561-3600 or via email at debbie@bernardmgross.com or susang@bernardmgross.com. The firm has expertise in prosecuting class actions alleging violations of the federal securities laws. Any person who purchased the securities of Fairway pursuant to the April 17, 2013 IPO may move the Court to serve as lead plaintiff through counsel of his choice, or may choose to do nothing and remain an absent class member.
Fairway was founded in 1933 and is headquartered in New York, New York. The complaint charges Fairway, certain of its officers and directors and the underwriters of the IPO with violations of the Securities Act. 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. 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.
If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters,
