According to the Complaint, on or about March 6, 2015, Sprouts conducted the registered public sale of the Selling Stockholders remaining shares of Sprouts common stock. Plaintiff and other members of the Class purchased Sprouts common stock pursuant to the Offering Documents.
The Complaint alleges the Offering Documents were negligently prepared, and, as a result,contained untrue statements of material facts and/or omitted to state facts necessary to make the statements made not misleading. Specifically, the Offering Documents incorporated by reference, among other documents, the Company's 2014 10-K. However, the Offering Documents failed to offer any qualifying discussion of the Company's statements regarding produce price deflation set forth in the 2014 10-K, or any discussion of then-current trends in price deflation and its effects on the Company's revenue growth.
On March 24, 2017, the Court granted a Motion to Remand this case to the Maricopa County Superior Court. On April 21, Defendants filed a Notice appealing the Motion to Remand. On April 11, 2018, Defendants filed a Motion voluntarily dismissing their appeal.