Lawsuit for Investors in Stitch Fix, Inc. (NASDAQ: SFIX) Shares Announced by Shareholders Foundation

SAN DIEGO, CA, October 22, 2018 (Newswire.com) - The Shareholders Foundation, Inc. announces that a lawsuit was filed for certain investors in shares of Stitch Fix, Inc. (NASDAQ: SFIX).

Investors, who purchased shares of Stitch Fix, Inc. (NASDAQ: SFIX), have certain options and should contact the Shareholders Foundation at [email protected] or call +1(858) 779 - 1554.

On October 1, 2018, after the close of trading, Stitch Fix, Inc. announced fiscal fourth-quarter earnings ending July 28, 2018. The Company reported lower than expected revenue and weaker-than-expected active client numbers. During the conference call held with investors later that evening, Stitch Fix, Inc conceded that, despite having reported on June 7, 2018, which was already a third of the way through the 2018 fourth quarter, that it had grown active clients by 180,000 quarter-over-quarter to 2.7 million, its active client growth rate had declined dramatically during the fourth quarter and remained virtually flat. Also during the call, Stitch Fix, Inc disclosed that it had “temporarily ceased [its] national TV campaign for 10 weeks” during the 13 weeks of the 2018 fourth quarter, purportedly to “measure channel efficacy”.

On October 11, 2018, a lawsuit was filed against Stitch Fix, Inc. over alleged securities laws violations. More specifically, the plaintiff claims that the defendants made materially false and misleading statements and/or failed to disclose adverse information about Stitch Fix's business and prospects, including that its active client growth had slowed dramatically and that defendants had shut down Stitch Fix's television advertising campaign for much of the fourth quarter of 2018 and that as a result of defendants' false statements and/or omissions, the price of Stitch Fix common stock was artificially inflated to as high as $51.19 per share between June 8, 2018 and October 1, 2018.

Those who purchased Stitch Fix, Inc. (NASDAQ: SFIX) shares should contact the Shareholders Foundation, Inc.

CONTACT:

Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
[email protected]
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108

The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. Any referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is only provided as a public service. It is not intended as legal advice and should not be relied upon.

SOURCE: Shareholders Foundation, Inc.

Source: Shareholders Foundation, Inc.