Crocs, Inc. and its consolidated subsidiaries are engaged in the design, development, worldwide marketing, distribution, and sale of casual lifestyle footwear and accessories.

On February 17, 2022, Crocs acquired 100% of the equity of a privately-owned casual footwear brand business (“HEYDUDE”), pursuant to a securities purchase agreement entered into on December 22, 2021. HEYDUDE is engaged in the business of distributing and selling casual footwear under the brand name “HEYDUDE.” The majority of HEYDUDE sales are currently in the United States.

According to the Company, "Crocs’ business has continued to evolve in the period following the consummation of the Acquisition, as we have grown the brand and staffed and developed our leadership team at HEYDUDE. In the fourth quarter of 2023, to reflect changes in the way management evaluates performance, makes operating decisions, and allocates resources, we updated our reportable operating segments to be (i) Crocs Brand and (ii) HEYDUDE Brand, which are discussed in more detail in “Business Segments and Geographic Information” below. Within the regions in which we operate, we prioritize six core markets for the Crocs Brand where we believe the greatest opportunities for growth exist: (i) China, (ii) India, (iii) Japan, (iv) South Korea, (v) the U.S., and (vi) Western Europe."

Crocs' acquisition of HEYDUDE, is now at the center of a securities fraud class action complaint. According to the underlying class action complaint, it is alleged that Croc’s, Inc. (NASDAQ: CROX), via certain of its officers and directors, made materially false and/or misleading statements, as well as failed to disclose material adverse facts, about the Company’s business and operations. Specifically, Defendants misrepresented and/or failed to disclose: (1) the nature and sustainability of HEYDUDE’s revenue growth by concealing that 2022 revenue growth was driven, in large part, by the Company’s efforts to stock third-party wholesalers and retailers following the February 2022 acquisition of HEYDUDE; (2) that as the Company’s retail partners began to destock this excess inventory, waning product demand further negatively impacted the Company’s financial results; and (3) that, as a result, Defendants’ representations about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.

Current Crocs shareholders who have held shares of the Company’s stock since prior to November 3, 2022, can seek corporate reforms, the return of funds, and a court approved incentive award if appropriate.

If you would like to learn more at no cost to you, please contact Joshua Grabar at [email protected] or Mia Heller at [email protected], or call us at 267-507-6085.