November 6, 2020 - An amended consolidated complaint was filed.

September 30, 2020 - The court granted the defendants' motion to dismiss. The plaintiffs were given leave to amend the complaint.

October 28, 2019 - A motion to dismiss the consolidated complaint was filed.

September 18, 2019 - A consolidated complaint was filed.

October 11, 2018 - An investor in shares of Stitch Fix, Inc. (NASDAQ: SFIX) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Stitch Fix, Inc. in connection with certain allegedly false and misleading statements made between June 8, 2018 and October 1, 2018.

Founded in 2011, San Francisco, CA based Stitch Fix, Inc is an online retail fashion subscription service. Stitch Fix, Inc. went public in November 2017. On November 16, 2017, Stitch Fix, Inc. (NASDAQ:SFIX) announced the pricing of its initial public offering (“IPO”) of 8,000,000 shares of its Class A common stock at a price to the public of $15 per share. For subscription businesses like Stitch Fix, an important business metric for investors is the number and growth rate of its “active clients.” During 2017 and 2018, Stitch Fix’s active client base had grown dramatically, reaching 2.7 million by the end of the third quarter of 2018. This growth was due, in large part, to the Company’s prolific television advertising campaign, which it had launched in 2017. Stitch Fix, Inc. reported that its Total Revenue rose from $730.31 million for the 12 months period that ended on July 30, 2016 to $977.13 million for the 12 months period that ended on July 29, 2017 and that its Net Income of $33.18 million for the 12 months period that ended on July 30, 2016 turned into a Net Loss of $0.59 million for the 12 months period that ended on July 29, 2017.

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”.

Shares of Stitch Fix, Inc. (NASDAQ: SFIX) declined to as low as $27.16 per share on October 3, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of Stitch Fix, Inc. (NASDAQ: SFIX) common shares between June 8, 2018 and October 1, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between June 8, 2018 and October 1, 2018, 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.