Stitch Fix Hit with Flurry of Lawsuits Over Growth Claims

In The Daily Scoop by Lauren Parker, Accessories Magazine

Stitch Fix last week was hit with a flurry of lawsuits alleging that the styling service made misleading statements about its growth prospects and advertising plans. The class action complaints were filed on behalf of company shareholders by the law firms of Bronstein, Gewirtz & GrossmanGainey McKenna & Egleston, and Robbins Geller Rudman & Dowd. Robbins Geller has signed on a lead plaintiff in Greg Sawicki, while the others must find one by Dec. 10. At least two were filed in U.S. District Court for the Northern District of California.The suits allege that Stitch Fix violated federal securities laws by making false and/or misleading statements about the strength of its active client growth, its television advertising plans and the impact of those on its profit and growth prospects, according to their press releases.

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