FARFETCH LIMITED SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired Farfetch Limited (“Farfetch” or the “Company”) (NYSE: FTCH) securities between March 9, 2023 and August 17, 2023, inclusive. The lawsuit seeks to recover Farfetch shareholders’ investment losses.
If you purchased securities in Farfetch between March 9, 2023 and August 17, 2023, inclusive, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
According to the Complaint, Farfetch, together with its subsidiaries, operates a global platform for the luxury fashion industry. In addition to revenue, one of Farfetch’s most important financial metrics is gross merchandise value (“GMV”), which the Company defines as the total dollar value of orders processed, inclusive of product value, shipping, and duty, and net of returns, value added taxes, and cancellations. According to Farfetch, the Company’s GMV closely correlates with its revenue.
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Among other things, Defendants failed to disclose to investors that: (i) Farfetch was experiencing a significant slowdown in growth in the U.S. and China; (ii) Farfetch faced onboarding challenges impacting the launch of its Reebok partnership; (iii) Farfetch downplayed challenges it faced with respect to, and/or overstated its ability to manage, its supply chain and inventory; (iv) the foregoing was having a significant negative impact on Farfetch’s revenue and GMV growth; and (v) accordingly, Farfetch was unlikely to meet market expectations for its Q2 2023 financial results or its own FY 2023 revenue guidance.
On August 17, 2023, Farfetch issued a press release announcing its Q2 2023 financial results. Among other items, Farfetch reported revenue of approximately $572 million, significantly less than the market consensus of $650.71 million. Farfetch also issued an FY 2023 revenue forecast of approximately $2.5 billion, compared to the average analyst estimate of $2.8 billion and the Company’s prior FY 2023 revenue forecast of $2.9 billion.
On this news, Farfetch’s stock price fell $2.15 per share, or over 45%, to close at $2.61 per share on August 18, 2023.
If you wish to serve as lead plaintiff, you must move the Court no later than December 19, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.
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