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LOS ANGELES, Sept. 27, 2019 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming November 18, 2019 deadline to file a lead plaintiff motion in the class action filed on behalf of Farfetch Limited (“Farfetch” or the “Company”) (NYSE: FTCH) investors who: a) purchased or otherwise acquired Farfetch securities pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s September 2018 initial public offering (“IPO” or the “Offering”); and/or b) purchased or otherwise acquired Farfetch Class A ordinary shares between September 21, 2018 and August 8, 2019, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com.
On or about September 24, 2018, the Company held its IPO in which it sold approximately 50.88 million shares of Class A common stock at a price of $20.00 per share.
On August 8, 2019, Farfetch reported a larger-than-expected loss of $89.6 million for second quarter 2019. The Company also announced a $675 million acquisition of New Guards Group and that its Chief Operating Officer had resigned.
On this news, the Company’s share price fell $8.12, or over 44%, to close at $10.13 per share on August 9, 2019, thereby injuring investors.
By the commencement of this action, the Company’s stock was trading as low as $10.20 per share, a nearly 50% decline from the $20 IPO price.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that large scale online wholesale was reasonably likely to lead to pricing volatility and heavy promotions of luxury goods; (2) that the Company’s core business was vulnerable to such pricing pressures; (3) that the Company would refuse to reduce merchandise prices to match the rest of the market; (4) that this sub-optimal pricing strategy rendered the Company’s platform highly susceptible to underpricing by competitors, despite what Defendants touted as a “superior” platform; (5) that, as a result, the Company’s past and projected Platform Gross Merchandise Value growth rates were foreseeably unsustainable; (6) that the Company would aggressively pursue acquisitions to remain profitable; and (7) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
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If you purchased or otherwise acquired Farfetch securities pursuant to the Registration Statement and/or during the Class Period, you may move the Court no later than November 18, 2019 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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