INVESTOR REMINDER: Berger Montague Advises Investors Of A Securities Fraud Action Filed Against FIGS, INC. (NYSE:FIGS); Lead Plaintiff Deadline is January 3, 2023
PHILADELPHIA, PA / ACCESSWIRE / November 23, 2022 / Berger Montague advises investors that a securities fraud class action lawsuit has been filed against FIGS, Inc. ("FIGS") (NYSE:FIGS) on behalf of those who purchased or otherwise acquired: (i) FIGS securities between May 27, 2021 and May 12, 2022, inclusive (the "Class Period"); and/or (ii) FIGS stock pursuant and/or traceable to the Offering Documents issued in connection with FIGS' initial public offering (the "IPO").
Investor Deadline: Investors who purchased or acquired FIGS securities may, no later than January 3, 2023, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (215) 875-3093, or Andrew Abramowitz at [email protected] or (215) 875-3015 or visit: https://investigations.bergermontague.com/figs-inc/
On June 1, 2021, FIGS announced the closing of its IPO. Pursuant to the Registration Statement, the defendants issued to the public 30,344,317 shares of Class A common stock, including the full exercise of the underwriters option to purchase an additional 3,957,954, at the price of $22 per share. The offering consisted of 4,636,364 shares sold by FIGS and 25,707,953 shares sold by Tulco, LLC, FIGS' largest stockholder.
According to the complaint, 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." Following this news, FIGS' stock price fell $3.21 per share, approximately 25%, to just $9.64 per share.
The complaint alleges that, in the Registration Statement, and throughout the Class Period, the defendants: (i) inflated FIGS' true ability to successfully secure repeat customers; (ii) failed to disclose FIGS' 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, the defendants' statements about FIGS' business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
James Maro, Senior Counsel
Andrew Abramowitz, Senior Counsel
SOURCE: Berger Montague