Whole Foods Sued After Overcharging Scandal
In the wake of an overcharging scandal, the problems for Whole Foods continue. Shareholder Yochanan Markman is leading a class-action lawsuit on behalf of purchasers of Whole Foods securities claiming that the situation drove down the share price and that the company made false or misleading statements and “routinely overstated the weight of its pre-packaged products and overcharged customers.”
It all stems from a New York Department of Consumer Affairs investigation finding that the high-end grocery chain has overcharged customers for pre-packaged foods like nuts, berries and vegetables. In one instance, the price of pre-packed chicken was off by $4.
That led to the company’s co-CEOs Walter Robb and John Mackey to issue an apology and give customers free fresh-packaged items if they find mistakes not in their favor. But soon after, Mackey said that the media “ran wild” with the story and that Whole Foods is actually the victim in the case.
Business Insisder got this response for Whole Foods Spokesman Michael Silverman:
“Whole Foods Market is committed to providing transparent, accurate pricing for all of our customers, and we back that commitment with our 100 percent pricing accuracy guarantee. We have upheld our responsibility to our stakeholders, and are confident that this complaint is baseless and without merit.”