Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Dec. 20, 2022 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises FIGS, Inc. (“FIGS” or “the Company”) (NYSE: FIGS) investors that a lawsuit filed on behalf of investors that purchased securities between May 27, 2021 and May 12, 2022, inclusive (the “Class Period”); and/or (ii) stock pursuant and/or traceable to the offering documents issued in connection with FIGS’ initial public offering (the “IPO”). FIGS investors are encouraged to contact the firm to discuss their legal rights.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
The FIGS class action lawsuit alleges that the offering documents and defendants throughout the Class Period claimed that due to FIGS’ access to significant customer data, it was able to maintain an efficient and steady supply chain. The truth was, however, that FIGS’ access to data did not allow it to mitigate supply chain problems through predictable sales. Instead, FIGS had to increasingly rely on air freight that costs materially more than the overseas shipping.
On May 12, 2022, FIGS announced disappointing results and slashed its expected sales, gross margin, and adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) because of these “supply chain” issues. FIGS also admitted that not only did they continue to rely on air freight during the first quarter of 2022, but 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.” On this news, FIGS’ stock price fell by approximately 25%, damaging investors.
The Complaint alleges that the Defendants made statements that were materially false and/or misleading, and failed to disclose material adverse facts about the Company's business operations and prospects. Specifically, defendants: (i) inflated the Company's true ability to successfully secure repeat customers; (ii) failed to disclose the Company's increasing dependence on air freight; (iii) inflated the expected net revenues, gross margin, and adjusted EBITDA margin for 2022; and (iv) that, as a result, of the foregoing, defendants' statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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