お知らせ • Mar 17
Glancy Prongay Wolke & Rotter LLP Files Securities Fraud Lawsuit on Behalf of Grocery Outlet Holding Corp. Investors
Glancy Prongay Wolke & Rotter LLP announced that it has filed a class action lawsuit in the United States District Court for the Northern District of California, captioned Jones v. Grocery Outlet Holding Corp., et al., Case No. 3:26-cv-02291, on behalf of persons and entities that purchased or otherwise acquired Grocery Outlet Holding Corp. securities between August 5, 2025 and March 4, 2026, inclusive. Plaintiff pursues claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. On March 4, 2026, after the market closed, Grocery Outlet announced results for the Fourth Quarter and full Fiscal Year 2025, revealing the Company’s full year financial results which missed guidance on nearly every major financial metric. The Company reported full year Fiscal Year 2025 adjusted EBITDA of $254.3 million (missing prior guidance of $258 million at the low end); net sales of $4,690 million (missing prior guidance of $4,700 million at the low end); comparable store sales which increased by 0.5% on a 52-week basis (missing prior guidance of 0.6% to 0.9%), and diluted adjusted earnings per share of $0.76 (missing prior guidance of $0.78 at the low end). Moreover, the Company revealed it was adding an additional optimization plan on top of its restructuring plan, and reshaping its new store growth strategy including the closure of 36 financially underperforming stores. Further, the Company also determined that the long-lived assets of the Closure Stores were impaired, and recognized $110 million of non-cash charges in Impairment of long-lived assets on the condensed consolidated statements of operations and comprehensive income (loss). The Company stated that it estimates between $14 million and $25 million in net total restructuring charges in Fiscal Year 2026, including between $51 million and $63 million of estimated cash expenditures primarily for lease termination fees, and between $11 million and $14 million of bad debt expense, partially offset by net non-cash write-off of right-of-use assets and lease liabilities associated with these leases of between $(48) million and $(52) million. On the same date, the Company held an earnings call in conjunction with releasing Fourth Quarter 2025 results. During the earnings call, the Company’s CEO further revealed that the Company had made the difficult decision to close 36 locations in part because it’s clear now that the Company expanded too quickly, and these closures are a direct correction. On this news, Grocery Outlet’s stock price fell $2.45, or 27.9%, to close at $6.34 per share on March 5, 2026, on unusually heavy trading volume. The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) the Company had expanded too quickly into new stores; (2) the Company’s purportedly strong financial and operational growth was being artificially supported by excessive rapid store expansion; (3) as a result, the Company was unable to achieve the sustainable growth required to meet its previously set guidance; (4) the Company’s Restructuring Plan would require further Optimization to achieve its operational goals, including significant store closures and asset write-downs; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.