Blue Apron investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Blue Apron is an ingredient-and-recipe meal kit service. Blue Apron also sells wine, kitchen tools and staples that are used in their test kitchens where new recipes are created.
On June 1, 2017, Blue Apron filed a registration statement on Form S-1 with the SEC. On June 28, 2017, Blue Apron filed its final amendment to the registration statement, which registered over 34 million shares for public sale. The registration statement contained a preliminary prospectus. The registration statement was declared effective by the SEC on June 28, 2017, and Blue Apron filed its final prospectus with the SEC on June 29, 2017 (the “Prospectus”). The registration statement and the Prospectus are collectively referred to herein as the “Registration Statement.”
Blue Apron priced the IPO at $10.00 per share. Through the IPO, the defendants issued and sold over 30 million shares. After deducting underwriting fees of $16.5 million, the company generated $283,500,000 in proceeds, before expenses.
According to the complaint, less than two months after going public, on August 10, 2017, Blue Apron shocked the stock market by announcing significant undisclosed problems, lowering its guidance for the second half of 2017, and stating that it planned to change its strategic approach for managing the business for the remainder of 2017. Following this news, Blue Apron’s stock closed on August 10. 201 7 at $5.14, almost half its IPO price of $10, marking the worst performance for a big IPO this year.
The complaint alleges that the Registration Statement failed to disclose, among other things, that: (1) rather than continue to significantly increase spending on advertising, Blue Apron had already decided to significantly reduce spending on advertising in Q2 2017, which would hurt sales and profit margins in future quarters; (2) Blue Apron was already experiencing adverse on-time in-full rates, meaning orders were not arriving on time or with all the ingredients needed, which was hurting customer retention; (3) the company had run into delays in Q2 2017 with its new factory in Linden, New Jersey, a factory which is expected to eventually account for more than half of the meal kits Blue Apron sells; and (4) existing and already-materialized delays at the company’s new factory in Linden, New Jersey were resulting in additional delays in new product rollouts, which was limiting the company’s ability to gain new customers and retain existing ones.
If you are a member of the class described above, you may no later than October 16, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed 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, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
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