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Oklahoma City, OK (October 15, 2018) – On October 11, 2018, a securities class action lawsuit was filed in the United States District Court for the Northern District of California against Stitch Fix, Inc. (NASDAQ: SFIX). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is June 8, 2018 through October 1, 2018. More specifically, the Complaint alleges that Stitch Fix, Inc. made materially false and/or misleading statements throughout the class period and/or failed to disclose that: (1) Stitch Fix’s active client growth had slowed to a crawl; (2) Stitch Fix had completely shut down its television advertising campaign for 10 of the 13 weeks in fourth quarter 2018, dramatically decreasing the number of new active client additions; and (3) as a result, the Company’s current business metrics and financial prospects were not as strong as it had led the market to believe during the Class Period.
On October 1, 2018, after-market hours, Stitch Fix revealed its fourth-quarter financial results ending July 28, 2018, reporting lower revenue and active client numbers. 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.
Plaintiff seeks to recover damages on behalf of all Stitch Fix, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, December 10, 2018 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
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