Grocery Outlet Board Sued by Shareholder Over System Upgrade Hit

April 29, 2025, 7:42 PM UTC

Grocery Outlet Holding Corp. leaders concealed persistent issues with upgrading the bargain supermarket chain’s digital systems before a record stock drop, a shareholder lawsuit said.

Share prices fell more than 19% the day after Grocery Outlet cut its 2024 profit outlook, saying additional transition issues had a higher-than-expected impact, a stockholder said in a complaint filed at the US District Court for the Northern District of California. It was then the stock’s steepest single-day plummet since it debuted on the market in 2019, according to data compiled by Bloomberg.

Grocery Outlook also released lower-than-expected guidance for the second fiscal quarter ...

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