NEW YORK–(BUSINESS WIRE)–#classaction–Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all investors that purchased Farfetch Limited (NYSE: FTCH) securities pursuant to and/or traceable to the company’s September 2018 initial public offering (“IPO”). Investors have until November 18, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action.
The complaint, filed September 17, 2019, alleges that throughout the Class Period, 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 failed to disclose to investors: (1) that large scale online wholesale was reasonably likely to lead to pricing volatility and heavy promotions of luxury goods; (2) that the company’s core business was vulnerable to such pricing pressures; (3) that the company would aggressively pursue acquisitions to remain profitable; and (4) that, as a result of the foregoing, defendants positive statements about the company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On or about September 24, 2018, Farfetch held its IPO in which it sold approximately 50 million shares of Class A common stock at a price of $20.00 per share.
On August 8, 2019, Farfetch reported a larger-than-expected loss of $89.6 million for second quarter 2019. The company also announced a $675 million acquisition of New Guards Group and that its Chief Operating Officer had resigned.
On this news, the company’s share price fell $8.12, or over 44%, to close at $10.13 per share on August 9, 2019. By the date this complaint was filed, the company’s stock was trading as low as $10.20 per share, a nearly 50% decline from the $20 IPO price.
If you purchased Farfetch securities pursuant or traceable to the IPO, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the Farfetch lawsuit, please go to https://bespc.com/ftch. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.