SAN DIEGO, Feb. 11, 2025 (GLOBE NEWSWIRE) — Robbins LLP reminds stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired Grocery Outlet Holding Corp. (NASDAQ: GO) securities between November 7, 2023 and May 7, 2024. Grocery Outlet is a value retailer of consumables and fresh products sold via a network of independently operated stores across the U.S.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations: Robbins LLP is Investigating Allegations that Grocery Outlet Holding Corp. (NASDAQ: GO) Misled Investors Regarding Completion of Grocery Outlet’s System Transition
According to the complaint, during the class period, defendants created the false impression that they possessed reliable information pertaining to the completion of Grocery Outlet’s System Transition and any potential negative impact resulting therefrom, while also minimizing the risks associated with potential and perceived setbacks to the Company’s finances as a result of implementation errors and other issues surrounding the System Transition. In truth, defendants’ repeated indications as to both when the Systems Transition would be completed and how significantly it would impact Grocery Outlet’s sales and margins fell short of reality as the defendants relied far too heavily on their ability to implement these new or otherwise upgraded systems without significant setbacks to the Company’s finances. Grocery Outlet was simply not equipped to properly execute on the transition as planned and communicated to investors, despite repeated assurances that the issues would be resolved and the transition completed with each coming quarter.
On May 7, 2024, Defendants released their Q1FY24 results, which surprisingly announced both a significantly larger-than-expected impact from Systems Transition issues and significantly below-market guidance for the second quarter. On this news, the price of the Company’s shares fell from $25.90 per share on May 7, 2024, to $20.88 per share on May 8, 2024, a decline of about 19.38% in the span of just a single day.
What Now: You may be eligible to participate in the class action against Grocery Outlet Holding Corp. Shareholders who want to serve as lead plaintiff for the class must file papers with the court by March 31, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.
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