SAN DIEGO and AUSTIN, Texas, Aug. 11, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that a securities fraud class action complaint was filed in the U.S. District Court for the Western District of Texas. The complaint alleges that officers and directors of Whole Foods Market, Inc. (NASDAQGS: WFM) violated the Securities Exchange Act of 1934 between August 9, 2013 and July 30, 2015, by making materially false and misleading statements about Whole Foods' business prospects. Whole Foods operates as a retailer of natural and organic foods.
View this information on the law firm's Shareholder Rights Blog:
Whole Foods Overcharges its Customers
According to the complaint, Whole Foods officials failed to disclose that the company routinely overstated the weight of its pre-packaged products and overcharged customers. As a result, Whole Foods deceived the investing public and caused the market price of the company's securities to be artificially inflated. 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. In response, Whole Foods stated that there was no evidence of overcharging and that it would vigorously defend itself against what it described as "overreaching allegations" by NYCDA.
Then, on July 29, 2015, the company filed its Form 8-K, announcing its financial and operating results for the quarter ended July 5, 2015. Whole Foods also hosted an earnings call to discuss its financial results, during which it attributed its lower-than-expected quarterly results to news that the company had overcharged its customers. Glenda Flanagan, the company's Chief Financial Officer and Executive Vice President stated, "The impact was really felt across the whole country, not in New York City. This was national news." On this adverse news, Whole Foods' common stock fell $4.74 per share, or 11.61%, to close at $36.08 on July 30, 2015.
Whole Foods Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP