FIGS Class Action Lawsuit (FIGS Lawsuit)
What Is The FIGS Lawsuit About?
The FIGS Class Action Lawsuit (NYSE:FIGS) (FIGS Class Action Lawsuit) was filed when after the market closed on May 12, 2022, FIGS issued a press release announcing its first quarter 2022 financial results as well as an update to the full year outlook for 2022.
Is There A FIGS Class Action Lawsuit?
FIGS:NYSE Class Action Lawsuit (FIGS) was filed on November 1, 2022 on behalf of the shareholders.
On May 12, 2022, FIGS issued a press release announcing its first quarter 2022 financial results as well as an update to the full year outlook for 2022.
Not only did expected 2022 net revenues drop to a range of $510 million to $530 million compared to the previous outlook of $550 million to $560 million, expected gross margin decreased to a range of 67% to 68% compared to the previous outlook of 70%+ as well as a drop in its adjusted gross EBITDA margin to a range of 16% to 18% in comparison to its original estimate of 20%+.
The decrease in expected gross margin was “primarily due to a significant increase in the Company’s use of air freight to help mitigate supply chain challenges.”
Notably, FIGS’ gross margin for the first quarter of 2022 was reportedly 71.2%, representing a forty basis-point decrease year-over-year.
The Company also attributed this drop to higher air freight spend and increased ocean and air freight rates despite previously assuring stockholders that FIGS’ dependence on air freight had “peak[ed]” in the fourth quarter of 2021.
On this news, shares of FIGS stock dropped nearly 25% from a close of $12.85 per share on May 12, 2022 to $9.64 per share on May 13, 2022.
Is There A Deadline For The FIGS Lawsuit?
How Much Did Shareholders Lose In FIGS Stock?
Shareholders who held FIGS securities saw stock dropped nearly 25% from a close of $12.85 per share on May 12, 2022 to $9.64 per share on May 13, 2022.
What Is The FIGS Lawsuit Complaint?
Levi & Korsinsky, LLP announces that a FIGS class action lawsuit (FIGS Class Action Lawsuit) has been filed on behalf of investors who purchased FIGS Class Action Lawsuit (FIGS) securities between May 27, 2021 – May 12, 2022, inclusive. For more on the FIGS Lawsuit please contact us today.
According to the FIGS lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that:
(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, grossmargin, 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.
If you suffered a loss in FIGS, you have until January 3, 2023 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Why Levi & Korsinsky, LLP Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.
What Is The Lead Plaintiff Process?
THE LEAD PLAINTIFF PROCESS: According to the Private Securities Reform Act of 1995, any investor who bought or acquired FIGS securities in the Class Period may apply for appointment as a lead plaintiff. The lead plaintiff is usually the movant who has the most financial interest in the relief sought. However, he or she must also be typical or adequate to the putative classes. The FIGS class-action lawsuit is directed by the lead plaintiff. To litigate the FIGS Class Action Lawsuit, the lead plaintiff may choose any law firm it wishes. The ability of an investor to share in any future recovery is not tied to being the lead plaintiff in the FIGS Class Action Lawsuit.
What Does FIGS Do?
FIGS, Inc. operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States.
It designs and sells healthcare apparel and other non-scrub offerings, such as lab coats, under scrubs, outerwear, activewear, loungewear, compression socks footwear, and masks. It also offers sports bras, performance leggings, tops, super-soft pima cotton tops, vests, and jackets.
The company markets and sells its products through its digital platform comprising website and mobile app.
FIGS, Inc. was founded in 2013 and is headquartered in Santa Monica, California.