National law firm Glancy Prongay & Murray LLP (GPM) announces that it has filed a class action lawsuit in the United States District Court for the Northern District of California, captioned Giorgi v. Stitch Fix, Inc. et. al., (docket number: 3:18-cv-06965) on behalf of persons and/or entities that acquired Stitch Fix, Inc. (Stitch Fix or the Company) securities between June 8, 2018 and October 1, 2018, inclusive (the Class Period). Plaintiff pursues claims under the Securities Exchange Act of 1934. Stitch Fix investors are hereby notified that they have December 10, 2018 to move the Court to serve as lead plaintiff in this action.
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On October 1, 2018, after the close of trading, the Company reported its financial results for fourth quarter 2018, revealing only 54,000 net active client additions, a decline from 180,000 net additions in the prior quarter. On this news, the Companys share price fell $15.69 per share, more than 35%, to close at $31.58 per share on October 2, 2018, on unusually high trading volume, thereby injuring investors.
Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Companys business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Companys 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 Companys active client additions; and (4) that, as a result of the foregoing, Defendants positive statements about the Companys business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
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If you purchased Stitch Fix securities during the Class Period, you may move the Court no later than December 10, 2018 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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