Class Actions Filed Against Grocery Outlet After Earnings Miss, Store Closures and $110 Million Charge

Overview

• Bronstein, Gewirtz & Grossman and Pomerantz announced class action filings naming Grocery Outlet and certain officers.
• The suits center on alleged securities fraud or other unlawful practices linked to the company’s March 4 disclosures.
• Grocery Outlet missed prior FY2025 guidance and said it will close 36 underperforming stores while recognizing a $110 million non-cash impairment.
• Management estimated $14 million to $25 million in 2026 restructuring charges, including $51 million to $63 million in cash costs primarily for lease terminations.
• Shares fell 27.87% to $6.34 on March 5, and investors have until May 15, 2026 to ask the court to be named lead plaintiff.