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PRNewswire 26-May-2023 10:30 AM
LOS ANGELES, May 26, 2023 /PRNewswire/ -- Glancy Prongay & Murray LLP ("GPM") announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against Allbirds, Inc. ("Allbirds" or the "Company") (NASDAQ:BIRD).
Class Period: November 4, 2021 – March 9, 2023
Lead Plaintiff Deadline: June 12, 2023
If you wish to serve as lead plaintiff of the Allbirds lawsuit, you can submit your contact information at www.glancylaw.com/cases/Allbirds-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at email@example.com to learn more about your rights.
On March 9, 2023, after the market closed, the Company issued a press release announcing a fourth quarter 2022 net loss of $24.9 million and a full year 2022 net loss of $101.4 million. The Company also announced a full year 2022 adjusted EBITDA loss of $60.4 million, which was higher than the guidance target that estimated an adjusted EBITDA loss of $42.5 million to $37.5 million. Allbirds also disclosed in the press release that, in response to these negative results, it created a "strategic transformation plan to reignite growth, improve costs and capital efficiency, and drive profitability." The plan purportedly focused on four areas: reigniting product and brand, optimizing U.S. stores and slowing the pace of openings, evaluating transition of international go-to-market strategy, and improving cost savings and capital efficiency.
Also on March 9, 2023, after the market closed, Allbirds announced that its Chief Financial Officer was stepping down.
The same day, March 9, 2023, the Company held a conference call with analysts to discuss its fourth quarter 2022 results. On the call, Defendant Joseph Zwillinger, the Company's Co-CEO, explained that Allbirds' poor results were driven in part by the fact that Allbirds "overemphasized products that extended beyond our core DNA." As a result, he explained. "some products and colors have had narrower appeal than expected" and "[b]ecause we were spending significant time and resources on these new products that did not resonate well, we underinvested in our core consumers' favorite products."
On this news, the Company's stock price fell $1.11, or 47%, to close at $1.25 per share on March 10, 2023, thereby injuring investors.
By the commencement of this action, the Company's stock price had closed as low as $1.06 per share, a 92.9% decline from the Company's $15.00 per share IPO price.
The complaint filed alleges that, throughout the Class Period, Defendants failed to disclose to investors: (1) that Allbirds was overemphasizing products that extended beyond the Company's core offerings; (2) that the Company's non-core products had a narrower appeal and were not resonating with customers as well as the Company's core products; (3) that Allbirds was underinvesting in its core consumers' favorite products to push the Company's newer products with narrower appeal; (4) that underinvesting in Allbirds' core products was negatively impacting the Company's sales; and (5) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
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To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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SOURCE Glancy Prongay & Murray LLP