Investor: Claims In Stitch Fix Stock-Drop Suit Made Proper Showing Of Falsity

Mealey's (March 11, 2022, 1:44 PM EST) -- SAN FRANCISCO — A federal district court erred in dismissing shareholder claims for failure to properly plead falsity in a securities class action against online retail fashion subscription service provider Stitch Fix Inc. and three of its senior executives over misrepresentations the defendants allegedly made regarding the company’s expected growth in active clients, because the company’s alleged misstatements gave investors a false impression that the company had continued implementing a national television advertising campaign, the shareholder argues in a March 9 appellant brief filed in the Ninth Circuit U.S. Court of Appeals....