Whole Foods investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Whole Foods, which was founded in 1978 and headquartered in Austin, Texas, operates as a retailer of natural and organic foods. The company’s stores offer produce and floral, grocery, meat, seafood, bakery, prepared foods and catering, coffee, tea, beer, wine, cheese, nutritional supplements, vitamins, and body care products, as well as lifestyle products, including books, pet products, and household products.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (i) the company routinely overstated the weight of its pre-packaged products and overcharged customers; and (ii) as a result of the foregoing, the defendants’ statements about Whole Foods’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
The complaint alleges that on June 25, 2015, the New York City Department of Consumer Affairs (“NYCDA”) announced it had uncovered “systematic overcharging for pre-packaged foods” at Whole Foods’ eight New York City locations. On a survey of 80 different types of prepackaged products, NYCDA reported that it had found thousands of potential overcharging violations. In response, the company stated that there was no evidence of overcharging and responded that it would vigorously defend itself against what it described as “overreaching allegations” by NYCDA. Following this news, Whole Food stock fell $0.19, or 0.47%, to close at $40.57 on June 23, 2015.
Further, the complaint alleges that on July 29, 2015, post-market, Whole Foods hosted an earnings call to discuss the financial and operating results reported in the July 2015 8-K. According to the complaint, during the call, the defendants directly attributed Whole Foods lower-than-expected quarterly results to news that the company had overcharged its customers. Following this adverse news, Whole Foods’ common stock fell $4.74 per share, or 11.61%, to close at $36.08 on July 30, 2015.
If you are a member of the class described above, you may no later than October 5, 2015, move the Court to serve as lead plaintiff of the class, if you so choose.
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. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706