Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Central District of California on behalf of shareholders of FIGS, Inc. (NYSE: FIGS), if they purchased the Company’s securities between May 27, 2021 and May 12, 2022, inclusive (the “Class Period”) and/or pursuant to the Company’s June 2021 initial public offering (the “IPO”).
FIGS and certain of its executives are charged with failing to disclose material information during the Class Period and/or in the Registration Statement and Prospectus issued in conjunction with the initial public offering, violating federal securities laws.
On May 12, 2022, the Company released disappointing 1Q2022 financial results and full year outlook for 2022, disclosing declines in expected 2022 net revenues, adjusted gross EBITDA margin, and expected gross margin, due to a “significant increase in the Company’s use of air freight to help mitigate supply chain challenges,” and that “[f]or the rest of the year, we plan to significantly increase our use of airfreight to reduce our exposure to these unpredictable transit times,” despite the Company’s prior reassurances regarding its ability to maintain an efficient and steady supply chain.
On this news, the price of FIGS’ shares plummeted, falling approximately 25% to close at $9.64 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 January 3, 2023 to request that the court appoint them lead plaintiff.