An investor in NASDAQ:SFM shares filed a lawsuit in Arizona for those 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 firstname.lastname@example.org or call +1(858) 779 – 1554.
In March 2015 the company then conducted a secondary offering of over 15 million shares at $35.85 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 Farmers Market 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 Farmers Market Inc stated in relevant part that Sprouts Farmers Market 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.
Shares of Sprouts Farmers Market Inc declined to as low as $16.41 per share in August 2015.
Those who purchased NASDAQ:SFM shares in the March 2015 stock offering should contact the Shareholders Foundation, Inc.
Shareholders Foundation, Inc.
3111 Camino Del Rio North – Suite 423
92108 San Diego