whole foods market inc (WFM) Key Developments
Robbins Arroyo LLP Files Class Action Lawsuit against Whole Foods Market, Inc
Aug 11 15
Robbins Arroyo LLP announced 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. 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. 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 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.
Investor, Yochanan Markman Files Lawsuit Against Whole Foods Market Inc. over Fallout from Pricing Investigation
Aug 10 15
A lawsuit filed against Whole Foods Market Inc. alleges that company executives misled shareholders and misrepresented the company's stock value. The suit was filed in the federal U.S. District Court in Austin on August 6 by investor Yochanan Markman. In the suit, Markman alleges that the company's top executives, include co-CEOs John Mackey and Walter Robb, misled investors by failing to disclose the company's issues related to prices that it charged for pre-packaged items sold by-weight. Earlier this year, Whole Foods was the focus of an investigation into overcharging by regulators in New York City. The investigation found that customers were routinely charged inaccurate prices for pre-packaged items sold by weight. Mackey and Robb eventually appeared in a video to apologize to customers for the pricing irregularities, but said that they were not malicious and noted that the pricing irregularities also resulted in customers being under-charged for pre-packaged, by-weight items.
PREIT Announces New Lease Agreement with Whole Foods Market
Aug 3 15
PREIT announced a new lease with Whole Foods Market to open at Exton Square Mall in Exton, PA. The 55,000-square foot store will complement the plans to redevelop the property, bringing a unique and engaging shopping experience this part of Chester County. Located on a site consisting of approximately 10 acres along Route 100, customers will gain improved access to the new addition as the existing mall, which will be remerchandised.
Whole Foods Market Promotes Jason Buechel to Executive Vice President and Chief Information Officer
Jul 31 15
Whole Foods Market announced that Jason Buechel has been promoted from global vice president and chief information officer to executive vice president and chief information officer, becoming the newest member of the executive team effective immediately. Buechel retains responsibility for all aspects of information technology at Whole Foods Market. Prior to joining Whole Foods Market, Buechel spent 12 years at Accenture, where he was most recently managing director and partner in that company’s retail operations practice.
Whole Foods Market Inc. to Open Stores in Southern California
Jul 31 15
Whole Foods Market Inc.'s new value-oriented stores will be in Southern California. Whole Foods operates 24 stores in the Los Angeles area. A downtown Los Angeles store will open in November inside a luxury apartment complex on Grand Avenue. Four other 365 by Whole Foods Market stores will be opened in Santa Monica; Bellevue, Wash.; Houston; and Portland, Ore., in the second half of 2016. The company said it plans to double the number of 365 store openings in 2017.