Grocery Outlet's SAP launch cut gross margin by almost 2 points.
Judge Jon S. Tigar of the Northern District of California dismissed the proposed investor class action on 16 September, Law360 reported.
The investor accused Grocery Outlet of mishandling an enterprise resource planning rollout that caused disruptions and losses.
The system is from SAP. According to Grocery Dive, it replaced an aging platform and went live in August 2023.
In a court filing, Grocery Outlet wrote: "The SAP launch did not progress as smoothly as Grocery Outlet had hoped." The company said the transition caused inventory and ordering problems in the third quarter of 2023.
Grocery Dive reported the company said the technology issues cut its gross margin by almost 2 percentage points in the first quarter of fiscal 2024. By October 2025 the stock had lost more than half its value since the system went live, the outlet reported.
Grocery Outlet had argued the suit did not "allege adequately a single false or misleading statement". Law360 reported that the judge found the suit does not show the company's disclosures were misleading or deficient.
What does your board get told the week before go-live?
Sources
Our file on SAP
- 5 Nov
SAP says its network handles over $8 trillion of trade a year. Its AI agent post names no customer.
- 5 Nov
SAP says AI agents handle more than 90% of a wholesaler's 100,000 supplier confirmations unaided. Its Takeda figures are forecasts.
- 5 Nov
SAP says Somerset Council moved about 8,500 staff off its 17-year-old payroll system in 13 months, on budget. Nobody named the budget.
- 5 Nov
SAP offered 300 AI agents. Workday's product chief, a former SAP executive, called the autonomous enterprise idea "cold and soulless".
- 4 Nov
SAP won a Dutch military cloud deal of up to ten years. The ministry says it does not end its SAP dependence.
Every story here is open to read. The ERP LEADERS brief goes one step further.
The day in enterprise software, in one email: the stories that matter, the failures with their figures, one case taken apart. Read a sample or sign up for the brief.
Welcome back. · Issue 01
