Sprouts Farmers Market(US:SFM) Prnewswire·2025-12-01 22:06Core Viewpoint - The Sprouts Farmers Market, Inc. is facing a class action lawsuit due to allegations of misleading investors about its financial stability and growth prospects during a challenging macroeconomic environment [3][4]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled "Singh Family Revocable Trust u/a dtd 02/18/2019 v. Sprouts Farmers Market, Inc." and was filed in the District of Arizona [1]. - Investors who purchased Sprouts securities between June 4, 2025, and October 29, 2025, have until January 26, 2026, to seek appointment as lead plaintiff [1][5]. - The lawsuit claims that Sprouts and its executives misrepresented the company's resilience against economic pressures and overstated its growth potential [3][4]. Group 2: Allegations Against Sprouts - The lawsuit alleges that Sprouts created a false impression of its financial health, claiming it could maintain growth despite macroeconomic challenges, which was not the case [3]. - On October 29, 2025, Sprouts reported disappointing third-quarter results, with comparable store growth falling below expectations, and subsequently lowered its full-year guidance [4]. - Following the announcement of poor financial results, Sprouts' stock price dropped by more than 26% [4]. Group 3: Legal Process and Representation - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Sprouts securities during the class period to seek lead plaintiff status [5]. - The lead plaintiff will represent the interests of all class members and can choose a law firm to litigate the case [5]. - Robbins Geller Rudman & Dowd LLP is a prominent law firm involved in this case, known for securing significant monetary relief for investors in securities fraud cases [6].