The Sprouts Farmer’s Market, Inc. class action lawsuit was filed on behalf of those who purchased or otherwise acquired Sprouts Farmer’s Market, Inc. (“Sprouts”) (NASDAQ: SFM) securities between June 4, 2025 and October 29, 2025, inclusive (the “Class Period”). Captioned Singh Family Revocable Trust v. Sprouts Farmers Market Incorporated, No. 25-cv-04416 (D. Ariz.), the Sprouts class action lawsuit alleges that Sprouts and/or certain of its officers and/or directors violated federal securities laws by making false or misleading statements and/or omitted to disclose material information.
If you suffered losses as a result of your Sprouts investment and want to find out more about this action and your rights, fill out the form on this page or contact attorney Jonathan Naji, Esq. of KTMC by calling (484) 270-1453 or via e-mail at info@ktmc.com.
CASE BACKGROUND:
The Class Period begins on June 4, 2025, when Sprouts presented at the 2025 dbAccess Global Consumer Conference. During the presentation, Sprouts differentiated the company from its competition when discussing the impact of “volatile consumer confidence,” claiming Sprouts’ consumer base remains resilient regardless of the macroeconomic impact. Specifically, Sprouts touted that its “customer base is a little bit more resilient to what's going on in the macro environment… [with] customers who are very health focused,” and that “irrespective of what happens in this pretty significantly uncertain time that we're going to be able to cope and deal with the changes as they come to us.”
On October 29, 2025, Sprouts announced disappointing top-line results for the third quarter of fiscal 2025, with comparable stores growth faltering below the company’s expectations. Likewise, Sprouts announced disappointing fourth quarter guidance and further slashed its full year estimates, despite raising them only one quarter prior. Sprouts attributed its poor results and lowered guidance on “challenging year-on-year comparisons as well as signs of a softening consumer.” On this news, the price of Sprouts’ stock fell $27.30 per share, or 26.11%, from a closing price of $104.55 per share on October 29, 2025, to close at $77.25 per share on October 30, 2025.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material facts about the company’s business, operations, and prospects. Specifically, Defendants misrepresented and/or failed to disclose that: (1) Sprouts’ optimistic reports of growth and stability in the face of macroeconomic instability fell short of reality; (2) Sprouts’ consumer base was not as resilient to macroeconomic pressures as the company contended and ultimately reduced spending; (3) the perceived tailwinds from such pressures failed to manifest, and Sprouts’ ability to lap its prior comparables was well overstated, ultimately resulting in Sprouts being unable to meet its lofty growth projections; and (4) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
THE LEAD PLAINTIFF PROCESS:
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Sprouts securities during the Class Period to seek appointment as lead plaintiff in the Sprouts class action lawsuit. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs' Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. For more information about Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.