Sprouts Farmers Market(US:SFM) Globenewswire·2025-12-12 22:47Core Viewpoint - A class action lawsuit has been filed against Sprouts Farmers Market, Inc. for allegedly misleading investors regarding the company's performance and prospects during the specified class period [1][4]. Group 1: Lawsuit Details - The lawsuit is on behalf of investors who purchased Sprouts securities between June 4, 2025, and October 29, 2025, with a deadline for filing a lead plaintiff motion set for January 26, 2026 [1]. - The complaint alleges that Sprouts made materially false and misleading statements and failed to disclose adverse facts about its business and operations [4]. Group 2: Financial Performance - On October 29, 2025, Sprouts reported third-quarter results showing comparable-store sales growth of 5.9%, which was below the company's prior guidance [3]. - The company revised its full-year guidance for comparable store growth to flat to 2%, attributing the results to challenging year-on-year comparisons and signs of a softening consumer [3]. - Following the announcement, Sprouts' stock price dropped by $27.30 per share, or 26.1%, closing at $77.25 on October 30, 2025 [3]. Group 3: Allegations of Misleading Information - The lawsuit claims that Sprouts' management misrepresented the resilience of its customer base and the company's ability to adapt to economic changes [4]. - It is alleged that the dynamics of consumer spending were not sufficient to offset sales slowdowns, contradicting the company's positive outlook [4]. - The complaint also states that the reported sales growth figures did not accurately reflect a sustainable growth trajectory, indicating a significant slowdown in sales growth due to cautious consumer behavior [4].