SAN FRANCISCO, Oct. 24, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges Farfetch Limited (NYSE: FTCH) investors who suffered substantial losses to submit your losses now.
Class Period: Mar. 9, 2023 – Aug. 17, 2023
Lead Plaintiff Deadline: Dec. 19, 2023
Visit: www.hbsslaw.com/investor-fraud/FTCH
Contact An Attorney Now: FTCH@hbsslaw.com | 844-916-0895
Farfetch Limited (NYSE: FTCH) Securities Fraud Class Action:
The litigation focuses on the propriety of Farfetch’s statements about one of its most important metrics (gross merchandise value or “GMV”), which it says closely correlates with its revenue, the strength of its U.S. and China business, and the status of its touted partnership with Reebok.
The complaint alleges Farfetch made false and misleading statements and failed to disclose that: (1) Farfetch was experiencing a significant slowdown in growth in the U.S. and China; (2) Farfetch also faced onboarding challenges impacting the launch of its Reebok partnership; (3) Farfetch downplayed challenges it faced with respect to, and/or overstated its ability to, manage its supply chain and inventory; (4) all the foregoing was having a significant negative impact on Farfetch’s revenue and GMV growth; and (5) accordingly, Farfetch was unlikely to meet market expectations for its Q2 2023 financial results and its FY 2023 revenue guidance.
Investors learned the truth on Aug. 17, 2023, when Farfetch reported dismal Q2 2023 financial results and slashed its FY 2023 revenue guidance. The company missed market revenue consensus estimates by about $78 million and slashed its FY revenue guidance by approximately $400 million. Farfetch attributed its disastrous performance to significant growth slowdowns in the U.S. and China, onboarding challenges affecting the launch of its Reebok partnership, and inventory and shipping issues.
In response, the price of Farfetch shares crashed about 45% lower on Aug. 18, 2023, wiping out over $700 million of shareholder value. In addition, the news prompted several analysts to downgrade the stock.
“We’re focused on investors’ losses and investigating whether senior management hid Farfetch’s growth and partnership problems,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Farfetch and have significant losses, or have knowledge that may assist the firm’s investigation, submit your losses now.
If you’d like more information and answers to frequently asked questions about the Farfetch case and our investigation, read more.
Whistleblowers: Persons with non-public information regarding Farfetch should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FTCH@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
