INVESTOR ACTION REMINDER: Scott+Scott Attorneys at Law LLP Informs Investors That a Securities Class Action Has Been Filed Against FIGS Inc. (FIGS)
Nov 25th, 2022 10:30 EST
Lead Plaintiff Deadline is January 3, 2023
New York, New York--(Newsfile Corp. - November 25, 2022) - Scott+Scott Attorneys at Law LLP ("Scott+Scott"), an international shareholder and consumer rights litigation firm, informs investors that a securities class action lawsuit has been filed against FIGS Inc. (NYSE: FIGS) ("FIGS" or the "Company") and certain FIGS directors and officers, alleging violations of §§10(b) and 20(a) of the Exchange Act of 1934 and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder, as well as §§11 and 15 of the Securities Act of 1933. If you purchased Figs securities between May 27, 2021 and May 12, 2022 (the "Class Period"), including in, pursuant to, and/or traceable to the Company's initial public offering ("IPO") on or about May 27, 2021, you are encouraged to contact Scott+Scott attorney Jonathan Zimmerman at (888) 398-9312 for more information.
FIGS is a direct-to-consumer healthcare apparel and lifestyle company that primarily sells its products, which include medical scrubs, lab coats and underscrubs, in the United States through the Company's digital platforms. On June 1, 2021, FIGS announced the closing of its IPO, which raised approximately $580.5 million.
According to the complaint filed in the action, leading up to the IPO and throughout the Class Period, FIGS and the other named defendants: (i) inflated the Company's true ability to successfully secure repeat customers; (ii) failed to disclose the Company's increasing dependence on air freight, a much more costly alternative to ocean shipping; and (iii) inflated the Company's expected net revenues, gross margin, and adjusted EBITDA margin for 2022.
When the market began to learn the truth, the price of the Company's stock declined. For example, on May 12, 2022, the Company announced disappointing financial results. FIGS slashed its expected sales, gross margin, and adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA") because of "supply chain" issues, and disclosed that it plans "to significantly increase [its] use of airfreight to reduce [the Company's] exposure to [ ] unpredictable transit times[,]" after having relied "on air freight during the first quarter of 2022." On this news, the Company's stock price fell $3.21 per share, approximately 25%, to $9.64 per share.
Lead Plaintiff Deadline
The Lead Plaintiff deadline in this action is January 3, 2023. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.
What You Can Do
If you purchased FIGS securities during the Class Period, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Jonathan Zimmerman at (888) 398-9312 or [email protected].
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, Virginia, and Ohio.
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