Benefits system alleges Sprouts violates SEC regulations

By Robbie Hargett | Mar 29, 2016

PHOENIX (Legal Newsline) - A Mississippi retirement benefits system is suing a grocery store company and several of its chief officers, alleging it made false and misleading statements to investors.

The Public Employees' Retirement System of Mississippi, individually and for all others similarly situated, filed a class action lawsuit in U.S. District Court District of Arizona against Sprouts Farmers Market, J. Douglas Sanders, Amin N. Maredia, et al., alleging violations of the Securities Act of 1933.

The suit alleges Sprouts failed to disclose to the investing public it was experiencing a significant adverse trend in deflationary pricing that was negatively affecting the company's revenue and outlook for revenue growth.

This adverse fact, the complaint states, had a material impact on the company's profitability, and, as a result, the company's stock price fell significantly.


The Public Employees' Retirement System of Mississippi and others in the class seek compensatory damages, rescission or a rescissory measure of damages, equitable and/or injunctive relief, attorney fees and other costs of the suit. The plaintiffs are represented by attorneys Hart L. Robinovitch of Zimmerman Reed in Scottsdale, Arizona, and Lawrence A. Sucharow, James W. Johnson, and Carol Villegas of Labaton Sucharow in New York.

The defendant filed March 24 to remove the case to federal court.

 U.S. District Court for the District of Arizona Case number 2:16-CV-00815-ROS

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