According to the law firm press release, Etsy, Inc. operates online and offline marketplaces to buy and sell handmade items, vintage goods, and craft supplies. Its platform connects sellers and buyers to sell or buy products for art, home and living, mobile accessories, jewelry, wedding, and others. The company was founded in 2005 and is headquartered in Brooklyn, New York. It has additional offices in Berlin, Germany; Dublin, Ireland; Hudson, New York; London, United Kingdom; Melbourne, Australia; Paris, France; San Francisco, California; and Toronto, Canada.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) more than 5% of all merchandise for sale on Etsy's website were either counterfeit or constituted trademark or copyright infringement; (2) Brands are increasingly pursuing sellers on Etsy's platform for trademark or copyright infringement, jeopardizing the Company's listing fees and commissions; and (3) as a result of the foregoing, Etsy's public statements were materially false and misleading at all relevant times.
On May 11, 2015, before the market opened for trading, numerous news outlets, including Bloomberg and the Associated Press, reported that an equity analyst at Wedbush Securities issued a note downgrading Etsy to "Underperform."
As a result of this news, shares of Etsy fell $1.86, or over 8%, on unusually heavy volume, to close at $20.85 on May 11, 2015.
On March 16, 2017, the Court issued an Order dismissing this case with prejudice. A Notice of Appeal of this Order was filed on April 21. On May 15, 2018, the Court of Appeals affirmed the decision of the District Court.