Plaintiff's law firm issued a press release on October 11, 2018, announcing the filing of the lawsuit. According to the press release, Stitch Fix, Inc. is an online retail fashion subscription service. For subscription businesses like Stitch Fix, an important business metric for investors is the number and growth rate of its “active clients.” During 2017 and 2018, Stitch Fix’s active client base had grown dramatically, reaching 2.7 million by the end of the third quarter of 2018. This growth was due, in large part, to the Company’s prolific television advertising campaign, which it had launched in 2017.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose adverse information about Stitch Fix’s business and prospects, including that its active client growth had slowed dramatically and that Defendants had shut down Stitch Fix’s television advertising campaign for much of the fourth quarter of 2018. As a result of Defendants’ false statements and/or omissions, the price of Stitch Fix common stock was artificially inflated during the Class Period.

On August 9, 2019, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. All future docketing was ordered to be done in the lead case 18-CV-06208.

On September 18, 2019, Lead Plaintiff filed a consolidated Complaint. Defendants filed a Motion to Dismiss the consolidated Complaint on October 28. On September 30, 2020, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint.

On November 6, 2020, Lead Plaintiff filed an amended consolidated Complaint. Defendants filed a Motion to Dismiss the amended consolidated Complaint on December 7. On September 30, 2021, the Court issued an Order granting Defendants' Motion to Dismiss. The case was dismissed with prejudice. Lead Plaintiff filed a notice appealing the Court's Dismissal Order on October 29.

On October 19, 2022, the Court of Appeals affirmed the District Court's Dismissal Order.