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Sprouts Farmers Market Faces Securities Class Action With Jan. 26 Lead-Plaintiff Deadline

Plaintiffs allege overly rosy statements were exposed when weak Q3 results triggered a 26% selloff.

Overview

  • The federal case, Singh Family Revocable Trust v. Sprouts Farmers Market, Inc., No. 25-cv-04416, was filed in the U.S. District Court for the District of Arizona.
  • The putative class covers investors who bought Sprouts securities between June 4, 2025 and October 29, 2025, with the court deadline to seek lead-plaintiff status set for January 26, 2026.
  • The complaint claims Sprouts and certain executives and auditors understated macroeconomic risks, overstated growth prospects, and overstated the ability to lap prior comparables.
  • According to the filing, Sprouts reported disappointing Q3 results on October 29, cut guidance and slashed full-year estimates, and the stock fell more than 26% on the news.
  • Plaintiff firms including Robbins Geller and Kessler Topaz are recruiting eligible investors, with explicit inclusion of sellers of put options as potential class members.