Globenewswire·2026-03-26 22:00Core Viewpoint - Grocery Outlet Holdings Corp. is facing a securities fraud class action lawsuit due to allegations of unsustainable growth and rapid store expansion leading to financial underperformance [4]. Group 1: Lawsuit Details - The lawsuit is on behalf of investors who purchased securities from August 5, 2025, to March 4, 2026, alleging that the company expanded too quickly and could not achieve sustainable growth [4]. - Allegations include that the company's financial growth was artificially supported by excessive store expansion and that a restructuring plan would require significant store closures and asset write-downs [4]. Group 2: Financial Performance - For the fiscal year 2025, Grocery Outlet reported adjusted EBITDA of $254.3 million, net sales of $4.69 billion, and diluted adjusted earnings per share of $0.76, all missing prior guidance [5]. - The company announced an "optimization plan" in addition to its restructuring plan, which includes closing 36 underperforming stores and recognizing $110 million in non-cash impairment charges [5]. - Following the announcement, Grocery Outlet's share price dropped by approximately 27.9%, from $8.79 to $6.34 per share [5].