Farfetch investors may receive additional information about the case by clicking the link "Submit Your Information" above.
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 are a member of the class described above, you may no later than November 18, 2019 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. Returning the attached form or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her 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 1-844-887-9500 or 1-610-667-7706, or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-844-887-9500 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com