Stitch Fix, Inc.
(NASDAQ GS: SFIX)
Rigrodsky Law, P.A. is investigating potential claims against the officers and directors of Stitch Fix, Inc. ("Stitch Fix" or the "Company") on behalf of stockholders. A class action complaint has been filed against Stitch Fix. The complaint alleges that Stitch Fix made numerous false and misleading statements to investors concerning the synergy between the Company's Fix and Freestyle programs, and repeatedly denied claims that the Freestyle program could cannibalize the Company's legacy Fix business. Specifically, Stitch Fix repeatedly assured investors that the Company's Freestyle business was "an additive experience" and "complimentary" to the Fix business, that "the combination of those two things will allow us to address many more types of clients," and that "we see solid growth in both sides of the business." In truth, Stitch Fix concealed the fact that these programs were not complementary or additive. Stitch Fix knew that the Freestyle program would be much preferred to the Company's original Fix model, and that the Freestyle program would inevitably cannibalize the Company's legacy Fix business. As a result of these misrepresentations and omissions, Stitch Fix's common stock traded at artificially inflated prices.