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GO.US
id: 1481
Grocery Outlet (GO) Systems Transition Misrepresentation Case
N.D. California
Court4:25-cv-00957
Case number11/07/2023
Class period Start05/07/2024
Class period End03/31/2025
Lead Plaintiff motion deadline- $GO investors filed a lawsuit against Grocery Outlet Holding, alleging the company misled shareholders about the risks and financial impact of its system transition.
- On May 7, 2024, Grocery Outlet reported worse-than-expected Q1 2024 results, revealing significant unforeseen costs from the transition. Following this news, $GO stock dropped 19.38%.
Case Details:
Between November 7, 2023, and May 7, 2024, Grocery Outlet repeatedly assured investors that its transition to upgraded internal systems was on track and would not significantly impact financial performance. The company stated that it was making steady progress and downplayed any risks of major setbacks.
However, despite these reassurances, the system transition led to inventory visibility issues, order processing delays, and rising costs, directly affecting revenue and profitability. On February 27, 2024, Grocery Outlet admitted that the transition took longer than expected but insisted that the impact would be minimal.
On May 7, 2024, Grocery Outlet disclosed that the financial impact of the transition was much greater than previously stated. The company reported a significant decline in gross margin, attributing it to unexpected transition costs. It also lowered its financial outlook for the rest of 2024.
Following these revelations, $GO stock dropped 19.38% as investors reacted to the misrepresentation of the transition’s impact.
Based on these events, $GO investors filed a lawsuit against Grocery Outlet, claiming the company:
- It misled investors about the risks and financial impact of its system transition.
- It provided overly optimistic financial projections despite ongoing operational issues.
Investors believe Grocery Outlet failed to disclose the true extent of its system transition problems.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
05/08/2024
Filing date
12/02/2025
Lead Plaintiff Deadline
03/31/2025