Public Employees' Retirement System of Mississippi v. Sprouts Farmers Market Inc.
Status: Ongoing Case
On March 4, 2016, Labaton Sucharow, on behalf of Public Employees’ Retirement System of Mississippi, filed a securities class action against Sprouts Farmers Market, Inc. (Sprouts). Headquartered in Phoenix, Arizona, Sprouts operates a chain of grocery stores that offer a range of products that cater to consumers’ increasing interest in healthy eating and living, including fresh, natural, and organic produce.
The action arises out of materially misleading statements and omissions made by Sprouts in offering documents filed with the Securities and Exchange Commission in connection with a secondary offering conducted by the company from March 6, 2015 to March 10, 2015. The plaintiff alleges that Sprouts misled its investors and failed to disclose a known adverse trend in deflationary pricing that was negatively affecting the Sprout’s revenue and its growth outlook. The plaintiff's motion to remand the action back to state court has been fully briefed and is currently pending before the court.
The case is Public Employees’ Retirement System of Mississippi v. Sprouts Farmers Market, Inc., et al., No. CV 2016-050480 (Ariz. Super. Ct.). Labaton Sucharow represents Public Employees’ Retirement System of Mississippi. The defendants are Sprouts Farmers Market, Inc., its former CEO, current CEO, current CFO, Controller and Vice President, Chairman of the board, its co founder, three additional directors, two investment funds that sold their Sprouts position in the offering, and the two underwriters of the offering.