Company: Stitch Fix, Inc.
Class Period: June 8, 2018 — October 1, 2018
Court: U.S.D.C. – Northern District of California
Deadline: December 10, 2018
Kaskela Law LLC announces that an investor class action lawsuit has been filed against Stitch Fix, Inc. (NASDAQ: SFIX) (“Stitch Fix” or the “Company”) on behalf of purchasers of the Company’s common stock between June 8, 2018 and October 1, 2018, inclusive (the “Class Period”)
The class action complaint alleges that defendants made materially false and misleading statements about the strength of the Company’s active client growth, and continued investment in television advertising and its impact on the Company’s financial prospects, setting high investor growth expectations far beyond what the Company was actually then experiencing. The complaint further alleges that, as a result of the foregoing, investors purchased Stitch Fix’s common stock at artificially inflated prices during the Class Period.
On October 1, 2018, Stitch Fix reported quarterly financial results that fell short of projected active client growth expectations and disclosed that the Company had signed up far fewer than expected new active clients during the quarter. The Company also disclosed that Stitch Fix’s active client count was virtually flat, coming in at 2.7 million. Following this news, shares of the Company’s stock declined $15.69 per share, or over 35% in value, to close on October 2, 2018 at $28.94 per share, on heavy trading volume.
IMPORTANT DEADLINE: Investors who purchased Stitch Fix’s common stock during the Class Period may, no later than December 10, 2018, seek to be appointed as a lead plaintiff representative of the investor class.
Investors who purchased the Company’s common stock during the Class Period and suffered a financial loss in excess of $100,000 are encouraged to contact Kaskela Law LLC at (888) 715 – 1740 for additional information about this action and their legal rights and recovery, or complete the information form on this page.