Grocery Outlet Seeks to Dismiss Suit Over Tech Problems
Grocery Outlet is seeking to dismiss a suit that claims the company misled investors about its technology problems.
The company claims that the case should not proceed because it fails to
“allege adequately a single false or misleading statement”on the part of the retailer’s executives.
- The suit stems from the company’s decision to replace an aging technology platform with an upgraded system from SAP.
- The new system was intended to streamline operations and provide modern reporting, product, inventory, and financial platforms.
The new system got off to a shaky start when it went live in August 2023, which Grocery Outlet acknowledged, stating that
“The SAP launch did not progress as smoothly as Grocery Outlet had hoped”.
Author's summary: Grocery Outlet seeks dismissal of suit over tech issues.