The Grocery Outlet Holding Corp. class action lawsuit was filed on behalf of those who purchased or otherwise acquired Grocery Outlet Holding Corp. (“Grocery Outlet”) (NASDAQ: GO) securities between August 5, 2025 and March 4, 2026, inclusive (the “Class Period”). Captioned Jones v. Grocery Outlet Holding Corp., No. 26-cv-02291 (N.D. Cal.), the Grocery Outlet class action lawsuit alleges that Grocery Outlet and/or certain of its officers and/or directors violated federal securities laws by making false or misleading statements and/or omitted to disclose material information.
If you lost money as a result of your Grocery Outlet investment and want to find out more about this action and your rights, fill out the form on this page or contact attorney Jonathan Naji, Esq. of KTMC by calling (484) 270-1453 or via e-mail at info@ktmc.com.
COMPLAINT ALLEGATION SUMMARY:
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material facts about the company’s business, operations, and prospects. Specifically, 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.
WHY DID GROCERY OUTLET’S STOCK DROP?
On March 4, 2026, after the market closed, Grocery Outlet announced its financial results for the fourth quarter and full fiscal year 2025 and revealed that the company’s full year results missed guidance on nearly every major financial metric. Grocery Outlet also revealed the company 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.” On the corresponding earnings call held that same day addressing the poor results, Grocery Outlet’s CEO noted that the company had “made the difficult decision to close 36 locations” in part because “it’s clear now that we expanded too quickly, and these closures are a direct correction.”
On this news, Grocery Outlet’s stock price fell $2.45 per share, or 27.9%, to close at $6.34 per share on March 5, 2026.
THE LEAD PLAINTIFF PROCESS:
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Grocery Outlet securities during the Class Period to seek appointment as lead plaintiff in the Grocery Outlet class action lawsuit. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs' Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.