Faruqi & Faruqi, LLP Investigates Claims on Behalf of Sprouts Farmers Market Investors
Company Symbol: SFM | Date: January 14, 2026
Overview of Investigation into Sprouts Farmers Market
Faruqi & Faruqi, LLP, a prominent securities law firm, has announced an investigation concerning potential claims against Sprouts Farmers Market, Inc. (NASDAQ: SFM). Investors who acquired securities in Sprouts between June 4, 2025, and October 29, 2025, are encouraged to reach out to the firm to discuss possible legal rights and options. Attorney Josh (James) Wilson is available to provide consultations directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
Details of the Securities Class Action
The investigation comes in light of a federal securities class action filed against Sprouts, with an important deadline of January 26, 2026, to apply to become a lead plaintiff. The complaint alleges that Sprouts and its management violated federal securities laws by making misleading statements and concealing critical information regarding the company's growth prospects.
- False Statements: Positive statements about the company’s performance were released while key adverse facts were hidden.
- Sales Growth Decline: The firm indicated a significant slowdown in sales growth driven by cautious consumer behavior.
- Impact on Share Prices: These misleading communications led to shareholders purchasing securities at artificially inflated prices.
Recent Financial Results and Market Reaction
On October 29, 2025, Sprouts published its third-quarter fiscal results, revealing a troubling 4.3% decrease in comparable store sales compared to the previous quarter, which contrasted with prior expectations. Management projected further reductions for the fourth quarter, estimating only 0%-2% growth—much lower than the previously estimated annual growth range of 7.5%-9%.
Following these disclosures, shares of Sprouts (NASDAQ: SFM) experienced a sharp decline, falling by $22.64 to open at $81.91 per share.
How Investors Can Participate
Investors interested in participating in the class action can move to serve as a lead plaintiff. The lead plaintiff is determined as the individual with the largest financial interest in the litigation outcomes who also typically represents the interests of the class members. Investors choosing not to serve as lead plaintiffs will remain absent class members, and their ability to recover compensation remains unchanged regardless of their decision.
Faruqi & Faruqi, LLP seeks any individuals who may have information regarding the conduct of Sprouts Farmers Market, including former employees and shareholders, to come forward. For further information regarding the Sprouts class action, please visit www.faruqilaw.com/SFM or contact Josh Wilson directly.