Farfetch Limited (Nasdaq: FTCH)
A class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all those who purchased Farfetch Limited (Nasdaq: FTCH) between September 21, 2018 and August 8, 2019 (the “Class Period”)
The complaint alleges that in the Registration Statement and throughout the Class Period, defendants made false and misleading statements and/or failed to disclose material adverse information about Farfetch’s operations and prospects. Specifically, defendants failed to disclose that Farfetch’s core online wholesale business was highly susceptible to underpricing by competitors and that its growth rates were foreseeably unsustainable. As a result of defendants’ false statements and/or omissions, Farfetch Class A ordinary shares traded at artificially inflated prices of more than $30 per share during the Class Period.
On August 8, 2019, after the market closed, Farfetch announced its second quarter 2019 financial results, reporting a loss of $89.6 million after taxes, compared to a loss of $17.7 million in the prior year period. Additionally, after previously predicting that its platform GMV metric would grow 41% year over year, Farfetch announced that it now expected only 30% to 35% year-over-year platform GMV growth for the third quarter of 2019, and only 37% to 40% year-over-year platform GMV growth for fiscal 2019. Additionally, Farfetch announced that Chief Operating Officer, Andrew Robb, would be stepping down from his position after a six-month transitional period. During Farfetch’s second quarter 2019 earnings call with investors and analysts, Farfetch blamed the disappointing results on competitive pressures from increased promotional pricing and discounting of luxury goods by competitors, despite previously touting “barriers to entry” and Farfetch’s allegedly “superior” platform. Following this news, the price of Farfetch Class A ordinary shares declined $8.12 per share, or more than 44%, to close at $10.13 per share on August 9, 2019.
If you are a current shareholder and/or purchased stock during the period between September 21, 2018 and August 8, 2019 and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
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