Sprouts Faces Class Action Lawsuit After 26% Stock Crash in October 2025
A class action lawsuit has been filed against Sprouts Farmers Market, Inc. by Pomerantz LLP. The legal action follows a sharp drop in the company’s share price after disappointing financial results were announced in late October 2025.
Investors now have until January 26, 2026 to apply for the role of lead plaintiff in the case.
On October 29, 2025, Sprouts released its third-quarter earnings, which fell short of expectations. The company also lowered its future guidance, blaming tough comparisons and weaker consumer spending. The news triggered an immediate reaction in the stock market.
The next day, Sprouts’ share price plunged by $27.30, a drop of 26.11%. By the close of trading on October 30, the stock settled at $77.25 per share. Shortly after, Pomerantz LLP filed a class action lawsuit against the company.
The lawsuit claims that Sprouts and some of its executives or directors may have committed securities fraud or other illegal business practices. While no lead plaintiff has been named yet, the court could appoint one by January 26, 2026. Investors who bought Sprouts securities during the specified period have until that date to request the lead role.
The legal proceedings will now move forward, with the deadline for lead plaintiff applications set for January 26, 2026. Shareholders affected by the stock decline have the option to participate in the case. The outcome could impact Sprouts’ financial and operational standing in the coming months.
