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:
www.robbinsarroyo.com/shareholders-rights-blog/whole-foods-market-inc
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.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP