Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of FIGS, Inc. (“FIGS” or the “Company”) (NYSE: FIGS) investors who purchased: (a) securities between May 27, 2021 and May 12, 2022, inclusive (the “Class Period”); and/or (b) stock pursuant and/or traceable to the Offering Documents issued in connection with the Company’s May 2021 initial public offering (“IPO”). FIGS investors have until January 3, 2023 to file a lead plaintiff motion.
If you suffered a loss on your FIGS investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/figs-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at email@example.com to learn more about your rights.
In May 2021, FIGS completed its 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.
If you purchased or otherwise acquired FIGS securities during the Class Period, you may move the Court no later than January 3, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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