Kessler Topaz Meltzer & Check, LLP announced on May 2 that a securities fraud class action lawsuit has been filed against Grocery Outlet Holding Corp. for investors who purchased or acquired the company’s securities between August 5, 2025, and March 4, 2026. The case is pending in the United States District Court for the Northern District of California under Jones v. Grocery Outlet Holding Corp., Case No. 3:26-cv-02291 (N.D. Cal.). Investors have until May 15, 2026 to seek lead plaintiff status.
The lawsuit matters to shareholders because it alleges that Grocery Outlet made false or misleading statements about its business and growth prospects during the specified period. According to Kessler Topaz Meltzer & Check, LLP, “Defendants misrepresented and/or failed to disclose that: (1) Grocery Outlet had ‘expanded too quickly’ into new stores; (2) Grocery Outlet’s purportedly strong financial and operational growth was being artificially supported by excessive rapid store expansion; (3) as a result, Grocery Outlet was unable to achieve the sustainable growth required to meet its previously set guidance; (4) Grocery Outlet’s restructuring plan would require further optimization to achieve its operational goals, including significant store closures and asset write-downs; and (5) 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.”
On March 4, after reporting disappointing financial results for fiscal year 2025—including missing guidance on nearly every major metric—Grocery Outlet’s CEO said during an earnings call that they had “made the difficult decision to close 36 locations” because “it’s clear now that we expanded too quickly.” Following this announcement on March 5, shares fell $2.45 per share or nearly twenty-eight percent.
Investors who wish to be considered as lead plaintiffs must file no later than May 15. The firm explains that “the lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors.” Lead plaintiffs select counsel for themselves and other class members.
Kessler Topaz Meltzer & Check encourages affected shareholders to contact them with questions about their legal rights.
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The outcome of this litigation could affect both current shareholders’ recovery options as well as future disclosure practices at publicly traded companies.
