Business Wire 7-Dec-2018 4:00 PM
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Stitch Fix, Inc. ("Stitch Fix" or the "Company") (NASDAQ:SFIX) of the December 10, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Stitch Fix stock or options between June 8, 2018 and October 1, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/SFIX. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Stitch Fix securities between June 8, 2018 and October 1, 2018 (the "Class Period"). The case, San Giorgi v. Stitch Fix, Inc. et al, No. 18-cv-06965 was filed on November 16, 2018, and has been assigned to Judge Beth Labson Freeman.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose: (1) that the Company's active client growth rate was slowing; (2) that Company would cease its television advertising for a significant part of the quarter; (3) that the lack of television advertising would materially impact the Company's active client additions; and (4) 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.
Specifically, on October 1, 2018, the Company issued a press release to announce its financial results for the year ended July 28, 2018. The Company also participated in a conference call with investors on the same day, revealing that Stitch Fix's active client growth rate had already dramatically declined. The call also exposed that the Company had decided to temporarily cease its national TV campaign for 10 weeks during the 13 weeks of the fourth quarter in order to measure channel efficacy, and that this decision had had a negative impact on new client growth.
On this news, the Company's stock price fell from $44.63 per share on October 1, 2018 to $28.94 per share on October 2, 2018—a $15.69 or 35.16% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Stitch Fix's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
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