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Case Page

 

FIGS, Inc.

Case Summary

FIGS, Inc. Securities Litigation

Case Summary

Case Status:    DISMISSED  
—On or around 02/13/2025 (Court's order of dismissal)
Current/Last Presiding Judge:  
Hon. Otis D. Wright, II

Filing Date: November 01, 2022

According to the Complaint, FIGS, Inc. is a direct-to-consumer healthcare apparel and lifestyle brand which creates technically advanced apparel and products for healthcare professionals. The Company's products include scrubwear, lab coats, underscrubs, outerwear, activewear, loungewear, compressions socks, footwear, and masks.

On June 1, 2021, FIGS announced the closing of its IPO. Defendants offered shares at $22 per share.

On May 12, 2022, the Company announced disappointing results and slashed its expected sales, gross margin, and adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA"). On this news, the Company's stock price fell $3.21 per share, approximately 25%, to $9.64 per share.

The Complaint alleges that leading up to the IPO and during the Class Period, Defendants: (i) inflated the Company's true ability to successfully secure repeat customers; (ii) failed to disclose the Company's increasing dependence on air freight; and (iii) inflated the expected net revenues, gross margin, and adjusted EBITDA margin for 2022.

On February 14, 2023, 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 22-CV-07939.

Lead Plaintiff filed a consolidated Complaint on April 10, 2023. Defendants filed a Motion to Dismiss the consolidated Complaint on May 25. On January 17, 2024, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint.

Lead Plaintiff filed an amended Complaint on March 19, 2024. Defendants filed Motions to Dismiss the amended Complaint on May 3. On January 10, 2025, the Court issued an Order granting in part and denying in part Defendants' Motions to Dismiss. Plaintiff was given leave to amend the Complaint.

On January 30, 2025, Lead Plaintiff notified the Court of their intent not to amend and on February 10, Lead Plaintiff filed a notice appealing the Court's Dismissal Order. On February 13, the Court issued an Order dismissing the case with prejudice.

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