NEW YORK, Sept. 19, 2019 /PRNewswire/ -- Bragar Eagel & Squire, P.C. announces that a second class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all investors that purchased Farfetch Limited (FTCH) securities between September 21, 2018 and August 8, 2019 or pursuant to and/or traceable to the company's September 2018 initial public offering ("IPO"). Investors have until November 18, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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The complaint, filed September 19, 2019, alleges that in the IPO registration statement and throughout the Class Period, defendants failed to disclose material adverse facts about the company's operations and prospects. Specifically, defendants failed to disclose that: (1) the company would refuse to reduce merchandise prices to match the rest of the market; (2) this sub-optimal pricing strategy rendered the company's platform highly susceptible to underpricing by competitors, despite what defendants touted as a "superior" platform; and (3) as a result, the company's past and projected growth rates were foreseeably unsustainable. As a result of the foregoing, defendants' statements about the company's business strategy and growth prospects lacked a reasonable basis at all relevant times.
On or about September 24, 2018, Farfetch held its IPO in which it sold approximately 50 million shares of Class A common stock at a price of $20.00 per share.
On August 8, 2019, Farfetch reported a larger-than-expected loss of $89.6 million for second quarter 2019. The company also announced a $675 million acquisition of New Guards Group and that its Chief Operating Officer had resigned.
On this news, the company's share price fell $8.12, or over 44%, to close at $10.13 per share on August 9, 2019. By the date this complaint was filed, the company's stock was trading as low as $10.20 per share, a nearly 50% decline from the $20 IPO price.
If you purchased Farfetch securities during the Class Period or pursuant to and/or traceable to the IPO, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at email@example.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the Farfetch lawsuit, please go to https://bespc.com/ftch. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
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