Investigations

GRABAR LAW OFFICE INVESTIGATES CLAIMS AGAINST OFFICERS AND DIRECTORS OF FIGS, INC. (NYSE: FIGS)

Grabar Law Office is investigating potential claims on behalf of FIGS, Inc. (NYSE: FIGS) shareholders. The investigation concerns whether certain officers of FIGS have breached their fiduciary duties owed to the company.

According to the underlying class action 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.

As alleged, unknown to the market, the IPO and SPO were cornerstones of a years-long scheme to buy out other private shareholders at artificially low prices, make exaggerated statements about FIGS’ data analytics capabilities, go public, pump the stock, pocket over $1 billion in proceeds, and leave public investors holding the bag.

This scheme is alleged to have allowed the founders and executives of FIGS to pump the stock price while selling over a billion dollars of their personal stock.

Current FIGS shareholders who have held FIGS stock since on or shortly after June 1, 2021, can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to them.

If you would like to learn more about this matter, you are encouraged to contact us at jgrabar@grabarlaw.com, or call Joshua Grabar at 267-507-6085.

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Investigations

GRABAR LAW OFFICE INVESTIGATES CLAIMS AGAINST OFFICERS AND DIRECTORS OF FIGS, INC. (NYSE: FIGS)

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