Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Stitch Fix, Inc. (SFIX)


NEW YORK, Aug. 31, 2022 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Stitch Fix, Inc. (“Stitch Fix” or the “Company”) (NASDAQ: SFIX) in the United States District Court for the Northern District of California on behalf of investors who purchased or otherwise acquired Stitch Fix common stock between December 8, 2020, and March 8, 2022, both dates inclusive (the “Class Period”).

The Complaint allege that Stitch Fix made numerous false and misleading statements to investors concerning the synergy between the Company’s Fix and Freestyle programs, and repeatedly denied claims that the Freestyle program could cannibalize the Company’s legacy Fix business. Specifically, the Complaint alleges that Stitch Fix repeatedly assured investors that the Company’s Freestyle business was “an additive experience” and “complimentary” to the Fix business, that “the combination of those two things will allow us to address many more types of clients," and that "we see solid growth in both sides of the business.” In truth, throughout the Class Period, Stitch Fix concealed the fact that these programs were not complementary or additive. Stitch Fix knew that the Freestyle program would be much preferred to the Company’s original Fix model, and that the Freestyle program would inevitably cannibalize the Company’s legacy Fix business. As a result of these misrepresentations and omissions, Stitch Fix’s common stock traded at artificially inflated prices during the Class Period.

Investors who purchased or otherwise acquired shares of Stitch Fix should contact the Firm prior to the October 25, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.