February 12, 2014 (Shareholders Foundation) - An investigation on behalf of investors of Fairway Group Holdings Corp (NASDAQ:FWM) shares over potential securities laws violations by Fairway Group Holdings and certain of its directors and officers in connection certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Fairway Group Holdings Corp (NASDAQ:FWM) concerning whether a series of statements by Fairway Group Holdings regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
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 $7.85 per share on February 11, 2014.