NEW YORK, Sept. 21, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Whole Foods Market, Inc. (“Whole Foods” or the “Company”) (NASDAQ:WFM) and certain of its officers. The class action, filed in United States District Court, Western District of Texas,, and docketed under 15-cv-00681, is on behalf of a class consisting of all persons or entities who purchased Whole Foods securities between August 9, 2013 and July 30, 2015 inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Whole Foods securities during the Class Period, you have until October 5, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Whole Foods 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. As of May 7, 2015, the company had approximately 417 stores worldwide.
The Complaint alleges that throughout the Class Period, 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, 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, Defendants’ statements about Whole Foods’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On June 25, 2015, the New York City Department of Consumer Affairs (“NYCDCA”) 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, NYCDCA 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 NYCDCA. On this news, Whole Food stock fell $0.19, or 0.47%, to close at $40.57 on June 23, 2015.
On July 29, 2015, post-market, the Company issued a press release and filed a Form 8-K with the SEC announcing its financial and operating results for the quarter ended July 5, 2015 (the “July 2015 8-K”). For the quarter, net income was $154 million, or $0.43 per diluted share, on revenue of $3.63 billion, compared to net income of $151 million, or $0.41 per diluted share, on revenue of $3.38 billion for the same period in the prior year. Reporting store sales growth of 0.6% for the last two weeks of the quarter, the July 2015 8-K stated, in part, that “[w]eights and measures audit in New York City stores garnered national media attention.”
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.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com