SAN DIEGO, Nov. 3, 2022 (GLOBE NEWSWIRE) — The class: Law firm for shareholder rights Robbins LLP reminds investors that on November 1, 2022, it filed a class action lawsuit alleging securities fraud in the U.S. District Court for the Central District of California (the “Court”) on behalf of all persons who own FIGURES, Inc. (“FIGS “) (NYSE : FIGURES) Common Shares either (i) between May 27, 2021 and May 12, 2022 or (ii) pursuant to and/or traceable to the offering documents issued in connection with the FIG IPO (the “Class Period”) The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 of the US Securities and Exchange Commission promulgated thereunder, and Section 11 of the Securities Act of 1933.

What is it about in this case: FIGS, Inc. (FIGS) misled investors about their ability to cost-effectively meet customer demand

FIGS, Inc. operates in the United States as a direct-to-consumer healthcare apparel and lifestyle company. Best known for its medical scrubs, the company also designs and sells other healthcare apparel such as lab coats, underwear, outerwear, athletic wear, loungewear, compression stockings, shoes and masks.

On June 1, 2021, FIG announced the completion of its IPO. The defendants offered shares at $22 per share. Prior to the IPO and during the Class Period: (i) the defendants exaggerated the Company’s true ability to successfully acquire repeat customers; (ii) failed to disclose the company’s increasing reliance on air freight; and (iii) inflates its expected 2022 net income, gross margin and Adjusted EBITDA margin.

The registration statement claimed that the company was able to maintain an efficient and stable supply chain due to access to key customer data. But the truth was, the company’s access to data didn’t allow it to mitigate supply chain issues through predictable sales. Instead, FIG increasingly had to resort to air freight, which…