Farfetch Limited
| Company Name | Farfetch Limited |
| Stock Symbol | FTCH |
| Lead Plaintiff Motion Deadline | November 18, 2019 |
On or about September 24, 2018, the Company held its IPO in which it sold approximately 50.88 million shares of Class A common stock at a price of $20.00 per share.
On August 8, 2019, Farfetch reported a larger-than-expected loss of $89.6 million for second quarter 2019. The Company also announced a $675 million acquisition of New Guards Group and that its Chief Operating Officer had resigned.
On this news, the Company’s share price fell $8.12, or over 44%, to close at $10.13 per share on August 9, 2019, thereby injuring investors.
By the commencement of this action, the Company’s stock was trading as low as $10.20 per share, a nearly 50% decline from the $20 IPO price.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that large scale online wholesale was reasonably likely to lead to pricing volatility and heavy promotions of luxury goods; (2) that the Company’s core business was vulnerable to such pricing pressures; (3) that the Company would aggressively pursue acquisitions to remain profitable; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
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