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Stitch Fix, Inc. Class Action Lawsuit - SFIX

21 days left to seek lead plaintiff status

Case Summary

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The Stitch Fix class action lawsuit seeks to represent purchasers or acquirers of Stitch Fix, Inc. (NASDAQ: SFIX) Class A common stock between December 8, 2020 and March 8, 2022, inclusive (the “Class Period”).  Captioned Retail Wholesale Department Store Union Local 338 Retirement Fund v. Stitch Fix, Inc., No. 22-cv-04893 (N.D. Cal.) – the Stitch Fix class action lawsuit charges Stitch Fix, certain of its top executive officers, directors, and others with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the Stitch Fix class action lawsuit, please provide your information in the form on this page.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Stitch Fix class action lawsuit must be filed with the court no later than October 25, 2022.

CASE ALLEGATIONS: Traditionally, Stitch Fix sold products as a “Fix” box, through which the customer would receive a monthly box of items chosen by a personal stylist.  The customer would not know specifically which items they were receiving but would have the option to return whichever items it did not want.  But on December 8, 2020, the start of the Class Period, Stitch Fix launched the “Freestyle” program – a new, direct buy program where customers could choose from the outset which items to purchase.  Throughout the Class Period, Stitch Fix touted that the two programs were synergistic, and repeatedly denied claims that the Freestyle program could cannibalize its legacy Fix business.

However, on December 7, 2021, Stitch Fix admitted for the first time that it had downplayed the magnitude of its transition from the subscription-based Fix model to the retail-based Freestyle model.  Stitch Fix further admitted that it saw some “short-term cannibalization” from new customers who chose to use the new direct-buy Freestyle option rather than the traditional Fix option.  In addition, Stitch Fix announced a loss for its first quarter of 2021 and cut its full-year revenue projections.  On this news, the price of Stitch Fix stock declined by approximately 24%.

Then, on March 8, 2022, Stitch Fix offered a weak outlook for its third quarter of 2022 and cut its revenue guidance for the full year.  In doing so, Stitch Fix revealed a self-inflicted friction between the Freestyle program and the Fix program.  On this news, the price of Stitch Fix stock declined by an additional 6%, further damaging investors.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Stitch Fix Class A common stock during the Class Period to seek appointment as lead plaintiff in the Stitch Fix class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Stitch Fix class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Stitch Fix class action lawsuit.  An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Stitch Fix class action lawsuit.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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