Investors Say Fairway Group Misstated Finances Amid IPO
Law360, New York (March 19, 2014, 6:06 PM EDT) -- Investors in private equity-backed Fairway Group Holdings Corp. on Friday launched a shareholder class action against the grocery chain in New York federal court, saying the company made false statements about its financial condition before and after its $159 million initial public offering.
In its registration statement issued in connection with its April IPO, Fairway projected "solidly positive same-store growth" and 25 percent growth over all for the third quarter of 2014, but at the time, the company was experiencing decreased same-store sales, increased direct store expenses and sluggish growth, according to the shareholders' lawsuit.
The suit claims Fairway's issuance of...
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