NEW YORK (TheStreet) -- Shares of Whole Foods Market (WFM) are falling 0.72% to $40.74 after the New York City Department of Consumer Affairs said that the company overcharged customers for packaged food, according to CNBC.com.
The investigation revealed that 89% of the 80 different packages that were tested were "not in line with the federal standard for the maximum amount that an individual package can deviate from the actual weight," CNBC.com said.
The alleged overcharged products ranged from 80 cents for a pecan panko package to $14.84 for a coconut shrimp package, the DCA stated.
In response to this allegation, Whole Foods stated that they disagree and that they are defending themselves.
"We cooperated fully with the DCA from the beginning until we disagreed with their grossly excessive monetary demands. Despite our requests to the DCA, they have not provided evidence to back up their demands nor have they requested any additional information from us, but instead have taken to the media to coerce us," CNBC.com noted.
Separately, TheStreet Ratings team rates WHOLE FOODS MARKET INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WHOLE FOODS MARKET INC (WFM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."