|Company Name||FIGS, Inc.|
|Class Period||May 27, 2021 to May 12, 2022|
|Lead Plaintiff Motion Deadline||January 03, 2023|
In June 2021, FIGS completed its initial public offering (“IPO”), selling approximately 34.3 million shares of Class A common stock for $22 per share.
On May 12, 2022, FIGS announced disappointing financial results, adjusting its expected sales, gross margins, and EBITDA due to supply chain issues. The Company also admitted that it had continued to rely on air freight instead of the less expensive option of overseas shipping, despite previous claims that air freight was transitory.
On this news, FIGS’s stock fell $3.21, or 25%, to close at $9.64 per share on May 13, 2022, significantly below the IPO price, thereby injuring investors.
The complaint filed in this class action alleges that 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: (1) inflated the Company's true ability to successfully secure repeat customers; (2) failed to disclose the Company's increasing dependence on air freight; (3) inflated the expected net revenues, gross margin, and adjusted EBITDA margin for 2022; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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