RADNOR, Pa.--(BUSINESS WIRE)--
The law firm of Kessler Topaz Meltzer & Check, LLP announces that the firm has filed a securities fraud class action lawsuit against Farfetch Limited (FTCH) (“Farfetch”) on behalf of investors who purchased or acquired Farfetch Class A ordinary shares between September 21, 2018, and August 8, 2019, both dates inclusive (the “Class Period”), including those who purchased or otherwise acquired Farfetch Class A ordinary shares pursuant and/or traceable to the registration statement and prospectus (the “Registration Statement”) issued in connection with Farfetch’s September 21, 2018 initial public offering (the “IPO”). This action, captioned City of Coral Springs Police Officers’ Retirement Plan v. Farfetch Limited, et al., Case No. 1:19-cv-08720 (the “Coral Springs Action”) was filed in the United States District Court for the Southern District of New York. The Coral Springs Action asserts additional and expanded claims compared to those pled in the first-filed securities fraud lawsuit, Omdahl v. Farfetch Limited, et al., Case No. 1:19-cv-08657, which was also filed in the United States District Court for the Southern District of New York.
The filing of the Coral Springs Action does not change the November 18, 2019 deadline for investors who purchased or acquired Farfetch Class A ordinary shares during the Class Period to seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this action please visit: www.ktmc.com/new-cases/farfetch-limited.
Farfetch is the leading technology platform for the global luxury fashion industry. On September 21, 2018, the Defendants conducted the IPO pursuant to the Registration Statement, offering over 44 million Class A ordinary shares at $20.00 per share. The Defendants made various statements in the Registration Statement and throughout the Class Period touting the growth potential and competitive advantages of Farfetch’s business model.
On August 8, 2019, after the market closed, Farfetch issued a press release disclosing its second quarter 2019 financial results. Farfetch reported a loss of $89.6 million after taxes, compared to a loss of $17.7 million the year prior. Additionally, after previously predicting that its platform gross merchandise value (“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 third quarter 2019, and only 37% to 40% year-over-year Platform GMV growth for full year 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 previous touting of “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%, from a close of $18.25 per share on August 8, 2019, to close at $10.13 per share on August 9, 2019.
The complaint alleges that, in the Registration Statement and throughout the Class Period, Defendants failed to disclose material adverse facts about Farfetch’s operations and prospects. Specifically, Defendants failed to disclose that: (1) Farfetch would refuse to reduce merchandise prices to match the rest of the market; (2) this sub-optimal pricing strategy rendered Farfetch’s platform highly susceptible to underpricing by competitors, despite what the Defendants touted as a “superior” platform; and (3) as a result, Farfetch’s past and projected Platform GMV growth rates were foreseeably unsustainable. As a result of the foregoing, Defendants’ statements about Farfetch’s business strategy and growth prospects lacked a reasonable basis at all relevant times.
If you wish to discuss this securities fraud class action lawsuit or have any questions concerning this notice or your rights or interests with respect to this litigation, please contact Kessler Topaz Meltzer & Check (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (844) 887-9500 or (610) 667–7706, or via e-mail at email@example.com.
Farfetch investors may, no later than November 18, 2019, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.