Sprouts Farmers Market(US:SFM) Businesswire·2025-12-16 17:06Core Viewpoint - A class action lawsuit has been filed against Sprouts Farmers Market, Inc. on behalf of shareholders who purchased securities during the specified class period, alleging securities fraud due to misleading statements and undisclosed adverse facts about the company's performance and prospects [1][4]. Group 1: Lawsuit Details - The lawsuit is based on claims that Sprouts made materially false and misleading statements regarding its business operations and financial outlook during the class period [4]. - Shareholders have until January 26, 2026, to file a lead plaintiff motion in the ongoing lawsuit [1]. Group 2: Company Performance - On October 29, 2025, Sprouts reported third-quarter results showing a comparable-store sales growth of only 5.9%, which was below the company's prior guidance [3]. - The company revised its full-year guidance for comparable store growth to a range of flat to 2%, citing challenging year-on-year comparisons and signs of a softening consumer [3]. - Following the announcement, Sprouts' stock price dropped by $27.3, or 26.1%, closing at $77.25 per share on October 30, 2025, indicating significant investor losses [3]. Group 3: Allegations Against Defendants - The complaint alleges that the defendants failed to disclose that Sprouts' customer base was not as resilient to macroeconomic conditions as claimed, and that the company was not adequately positioned to handle economic uncertainties [4]. - It is also alleged that the shift in consumer spending dynamics was insufficient to offset sales slowdowns, and that the company's reported sales figures did not reflect a sustainable growth trajectory [4]. - The lawsuit contends that the positive statements made by the defendants regarding the company's business and prospects were materially misleading and lacked a reasonable basis [4].