INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of FIGS, Inc. (NYSE: FIGS) Shareholders
NEWTOWN, PA, November 10, 2022 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of FIGS, Inc. (“FIGS” or the “Company”) (NYSE: FIGS) between May 27, 2021 and May 12, 2022, inclusive (the “Class Period”); and/or (ii) FIGS stock pursuant and/or traceable to the Offering Documents issued in connection with FIGS’ initial public offering (the “IPO”)
Investors who purchased FIGS common stock during the Class Period may move the U.S. District Court for the Central District of California to appoint them as lead plaintiff, no later than January 3, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who wish to discuss the lead plaintiff selection process should contact Edelson Lechtzin LLP, toll free at 844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on the FIGS, Inc. Securities Class Action
FIGS is an American healthcare apparel brand based out of Santa Monica, California. The Company is known primarily for their medical scrubs, but they also sell other healthcare apparel such as lab coats, activewear, footwear, and masks.
On June 1, 2021, FIGS announced the closing of its IPO. Pursuant to the Registration Statement, the Company offered its stock at $22 per share. However, the case alleges that the Registration Statement contained false and/or misleading statements and/or failed to disclose that: (i) the Company inflated its true ability to successfully secure repeat customers; (ii) failed to disclose the Company’s heavy dependence on air freight; and (iii) inflated the expected net revenues, gross margin, and adjusted EBITDA margin for 2022.
On May 12, 2022, FIGS announced disappointing results and slashed their expected sales, gross margin, and adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) because of supply chain issues. The Company also admitted that they continued to rely on air freight and planned to increase their use of airfreight to reduce exposure to unpredictable transit times. On this news, the price of FIGS shares plummeted $3.21 per share (approximately 25%) to just $9.64 per share.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
About Edelson Lechtzin LLP
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.