Complaint Filed Against Grocery Outlet
Grocery Outlet Holding Corp. is the focus of a proposed class-action lawsuit alleging that the company possibly violated the Securities Exchange Act of 1934. Several law firms have shared releases to the public asking investors if they want to join the complaint, filed under Liberato v. Grocery Outlet Holding Corp. in the northern district of California.
At the crux of the complaint: losses sustained by investors during a period from November 2023 to May 2024. The federal securities case maintains that Grocery Outlet and its then-leaders shared what the plaintiff deems to be misleading statements and potentially concealed information related to the retailer’s transition to new and upgraded tech platforms. In May 2024, Grocery Outlet reported worse-than-expected results and a lowered full-year outlook, which it attributed to tech challenges, among other factors.
According to a release from the Faruqi & Faruqi law firm, the lead court-appointed plaintiff in the complaint is a Grocery Outlet investor. That firm and other law firms have sent out legal notices encouraging anyone who suffered significant losses during the aforementioned 2023-2024 period or with information related to the case to come forward.
Progressive Grocer reached out to Grocery Outlet for a response but has not heard back yet as of press time.
Although the year is still young, it’s already been a busy one for the value retailer. In January, Grocery Outlet named Jason Potter as its new president and CEO. He succeeds interim leader Eric Lindberg, Jr. who had stepped in for Robert Sheedy, when Sheedy stepped down in October. In December, the company appointed Christopher Miller as its CFO, replacing interim CFO Lindsay Gray.
Meanwhile, the retailer is looking ahead to the future. Grocery Outlet is adding three more locations in Ohio, for example, and recently announced a new “Free Groceries for Life” sweepstakes.
Emeryville, Calif.-based Grocery Outlet offers products sold through a network of independently operated stores at more than 520 locations in California, Washington, Oregon, Pennsylvania, Tennessee, Idaho, Nevada, Maryland, North Carolina, New Jersey, Georgia, Ohio, Alabama, Delaware, Kentucky and Virginia. The company is No. 66 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
