SAN DIEGO, April 04, 2016 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit was filed in Arizona for investors who purchased shares of Sprouts Farmers Market Inc (NASDAQ:SFM) in the March 2015 secondary offering.
Investors, who purchased shares of Sprouts Farmers Market Inc (NASDAQ:SFM) in the March 2015 secondary offering, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
In March 2015 Sprouts Farmers Market (“Sprouts”) conducted a secondary offering selling over 15 million shares at $35.30 per share.
The plaintiff alleges that the offering documents for the March 2015 secondary offering were negligently prepared, and, as a results, contained untrue statements of material facts and or omitted to state facts necessary to make to the statements made not misleading. More specifically, the plaintiff claims that those offering documents failed to offer any qualifying discussion of the company’s statements regarding produce price deflation set forth in the 2014 10-K, or any discussion of then-current trends in price deflation and its effects on the Company’s revenue growth and that the allegedly false and misleading nature of Sprouts’ Offering documents was revealed in part on May 7, 2015, when the company announced its results of operations for the first quarter 2015 and when the company hosted a conference call for investors and analysts to discuss these results.
The plaintiffs says that in the announcement of the first quarter of 2015 results Sprouts revealed disappointing results, including sales and earnings that missed analysts exceptions as well as sales growth of 4.8% – below the lowest projected guidance level of between 5 and 6 percent for the quarter.
The plaintiff says that during the May 7, 2016 conference call the Executive Chairman of Sprouts stated in relevant part that Sprouts began experiencing accelerating produce deflation in mid-February which increased significantly throughout March and that its CFO stated that the company began seeing in the middle of February acceleration and deflation in the produce area through the end of February as well as all the way through March and continuing into April.
The plaintiff says that on August 6, 2015, Sprouts revealed disappointing results, including sales that missed analysts' expectations and reduced the company's guidance for full-year sales growth guidance.
Those who purchased Sprouts (NASDAQ:SFM) shares in the March 2015 offering should contact the Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.