Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Northern District of California on behalf of shareholders of Stitch Fix, Inc. who purchased shares between December 8, 2020 and March 8, 2022.
Stitch Fix and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On December 7, 2021, the Company disclosed the occurrence of “short term cannibalization” from new customers who chose to use its new direct-buy Freestyle option rather than the traditional Fix option, as well as a loss for its first quarter of 2021 and a cut to its full-year revenue projections. On this news, shares of Stitch Fix declined by $5.97 per share, or 24%, from $24.97 per share to $19.00 per share.
Then, on March 8, 2022, the Company disclosed a weak outlook for the third quarter of 2022 and a cut to its revenue guidance for the full year, as well as “friction” that had occurred due to customers visiting stitchfix.com, the primary landing page for customers interested in the Fix, being redirected to the Freestyle experience first. On this news, shares of Stitch Fix declined by $0.67 per share, or 6%, from $11.01 per share to $10.34 per share.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until October 25, 2022 to request that the court appoint them lead plaintiff.