The consumer‑staples retailer Sprouts Farmers Market, Inc. (NASDAQ: SFM) has been the subject of a series of legal actions and investor‑communication notices in late 2025 and early 2026. The filings and advisories concern a securities fraud class action that alleges undisclosed financial information was withheld from shareholders.

Securities Fraud Class Action

On 30 December 2025, Kessler Topaz Meltzer & Check, LLP announced that it had filed a securities class‑action lawsuit on behalf of investors who purchased SFM shares between 4 June 2025 and 29 October 2025. The lawsuit claims that Sprouts failed to disclose material financial information, thereby inducing investors to buy shares that were later affected by a decline in the stock price. The firm’s statement emphasized that the action was filed to protect investors who suffered losses due to the alleged omissions.

The same day, Faruqi & Faruqi, LLP issued a “deadline alert” urging affected investors to contact the firm by 31 January 2026 for assistance in pursuing claims. The alert was repeated on multiple platforms, including Marketscreener.com and Finanznachrichten.de, and highlighted that the investigation covers purchases made during the period identified by the Kessler Topaz lawsuit.

Investor Communications

Multiple notices were disseminated by the involved law firms, including:

  • Kessler Topaz Meltzer & Check, LLP – “Encourages Sprouts Farmers Market, Inc. investors to consider joining the class action.”
  • Faruqi & Faruqi, LLP – “Investigates claims on behalf of investors; offers direct contact for those who purchased SFM shares in the specified window.”
  • Rosen, National Investor Counsel – “Encourages SFM investors to lead the lawsuit.”

These communications were posted on feeds.feedburner.com and other financial news aggregators between 2 January 2026 and 1 January 2026, underscoring the urgency of the deadlines.

Impact on Shareholders

The lawsuit alleges that the undisclosed financial information adversely affected the market value of SFM shares. While the stock closed at $79.67 on 30 December 2025, it had experienced a significant decline from its 52‑week high of $182 earlier in the year. Investors who held shares during the affected window may be eligible for damages if the court finds Sprouts liable for the alleged omissions.

Other Corporate Activity

Separately, Sprouts Farmers Market was involved in property transactions in late 2025. Four Corners Property Trust (FCPT) acquired a Sprouts property for $8.6 million, contributing to FCPT’s total acquisition volume of $318 million for the year. These transactions are unrelated to the litigation but were reported in the same timeframe.

Key Takeaway: Sprouts Farmers Market is currently facing a securities fraud class action that accuses the company of withholding material financial information. Investors who purchased shares between 4 June 2025 and 29 October 2025 are urged to consider joining the lawsuit before the 31 January 2026 deadline.