Fox Factory Holding Corp. (FOXF) Cut Guidance Case

The defendant has requested the court to dismiss the case.

N.D. Georgia

Court

1:24-cv-00747

Case number

05/06/2021

Class period Start

11/02/2023

Class period End

04/22/2024

Lead Plaintiff motion deadline

$FOXF stockholder filed a claim vs. Fox Factory for overstating its business prospects. 
In November 2023,  disappointing results and cut guidance caused $FOXF to fall 27.19%, losing over $948M in shareholder value.
On November 2, 2023, Fox Factory reported that:
Net sales for the third quarter of fiscal year 2023 decreased 19.1% year-over-year due to higher levels of inventory across various channels; 
Fox Factory cut its full-year sales guidance from between $1.67B and $1.70B to between $1.45B and $1.47B, citing continued inventory destocking in its specialty sports group business segment.
On this news, $FOXF declined 27.19% and lost over $948 million of its market capitalization, seriously damaging shareholders.

Considering all the representations, investors have reasons to suspect Fox Factory of making false claims about its business, that led to investor losses when revealed.

The first affected investor already filed an initial claim vs. Fox Factory in the Northern District of Georgia court.

Case Status

Motion to dismiss

Alleged Offence

Misleading Statements,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

11/03/2023

Filing date

02/20/2024

Lead Plaintiff Deadline

04/22/2024

Judge

Thomas W. Thrash, Jr.

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