LOS ANGELES (Legal Newsline) — A South Florida police officers and firefighters retirement trust alleges a health apparel company misled its stockholders in violation of federal securities laws.
City of Hallandale Beach Police Officers' and Firefighters' Personnel Retirement Trust on behalf of itself and all others similarly situated filed a complaint Dec. 8 in the U.S. District Court for the Central District of California against Figs Inc., Tulco LLC and others alleging violation of the Securities Exchange Act and other claims.
The plaintiffs allege in their complaint that they acquired common stock in FIGS, a healthcare apparel and lifestyle seller, between May 27, 2021, and May 12, 2022. They allege that FIGS's initial public offering (IPO) announced in June of 2021 contained untrue statements and omitted material facts that were required by law.
Specifically, the plaintiffs claim FIGS stated its "direct-to-consumer" strategy was a success when the company's co-founders had "little to no experience" in running the company, were unable to secure repeat customers and failed to disclose that the company was making choices that were "at odds with its purported data-driven inventory approach." They further claim FIGS's false statements came to light in December of 2021 when its CFO resigned and again in May 2022 when the company announced "disappointing financial results."
The plaintiffs allege the defendants' actions led to FIGS's stock declining by nearly 25%.
The plaintiffs seek monetary relief, interest, trial by jury and all other just relief. They are represented by Jonathan Uslander of Bernstein Litowitz Berger & Grossman LLP in Los Angeles; Hannah Ross, Avi Josefson and Scott Foglietta of Bernstein Litowitz Berger & Grossman LLP in New York; and Robert Klausner and Stuart Kaufman of Klausner Kaufman Jensen & Levison in Plantation, Florida.
U.S. District Court for the Central District of California Western Division case number 2:22-CV-08912-RGK-AGR