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FIGS.US
id: 429
C.D. California
Court2:22-cv-07939
Case number05/27/2021
Class period Start02/28/2023
Class period EndOn May 12, 2022, FIGS announced disappointing results and cut its expectations because of “supply chain” issues. The Company admitted that they continued to rely on air freight during the Q1 of 2022, but mentioned that “for the rest of the year, plan to significantly increase our use of airfreight to reduce our exposure to these unpredictable transit times.”
On this news, the FIGS stock dropped about 25%, losing over $0.5 billion of its capitalization.
Going back to the Company's IPO in June 2021, the Registration Statement blamed the COVID-19 pandemic for the use of air freight in the time leading up to the IPO. However, FIGS was continually relying on air freight for its business. Even after the IPO, as the Company continued to rely on cost air freight, the defendants continued to claim that air freight was transitory. For example, the Company stated that the use of air freight was at its “peak” during the Q4 of 2021, and that “we’re pretty confident that we’re going to see less airfreight overall than we’re seeing it in the Q4 as we get into 2022.”
Taking all statements and relevant management's actions into account, investors have reason to suspect that FIGS Leaders constantly made misleading statements to shareholders.
Case Status
Dismissed
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Negligence,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
05/12/2022
Filing date
11/01/2022