Kessler Topaz Meltzer & Check, LLP Files a Shareholder Class Action Lawsuit Against Farfetch Limited with Expanded Claims– Lead Plaintiff Deadline Remains November 18, 2019
The law firm of Kessler Topaz Meltzer & Check, LLP announces that the firm has filed a securities fraud class action lawsuit against Farfetch Limited (NYSE: FTCH) (“Farfetch”) on behalf of investors who purchased or acquired Farfetch Class A ordinary shares between September 21, 2018, and August 8, 2019, both dates inclusive (the “Class Period”), including those who purchased or otherwise acquired Farfetch Class A ordinary shares pursuant and/or traceable to the registration statement and prospectus (the “Registration Statement”) issued in connection with Farfetch’s September 21, 2018 initial public offering (the “IPO”). This action, captioned City of Coral Springs Police Officers’ Retirement Plan v. Farfetch Limited, et al., Case No. 1:19-cv-08720 (the “Coral Springs Action”) was filed in the United States District Court for the Southern District of New York. The Coral Springs Action asserts additional and expanded claims compared to those pled in the first-filed securities fraud lawsuit, Omdahl v. Farfetch Limited, et al., Case No. 1:19-cv-08657, which was also filed in the United States District Court for the Southern District of New York.
The filing of the Coral Springs Action does not change the November 18, 2019 deadline for investors who purchased or acquired Farfetch Class A ordinary shares during the Class Period to seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this action please visit: www.ktmc.com/new-cases/farfetch-limited.
Farfetch is the leading technology platform for the global luxury fashion industry. On September 21, 2018, the Defendants conducted the IPO pursuant to the Registration Statement, offering over 44 million Class A ordinary shares at $20.00 per share. The Defendants made various statements in the Registration Statement and throughout the Class Period touting the growth potential and competitive advantages of Farfetch’s business model.
On August 8, 2019, after the market closed, Farfetch issued a press release disclosing its second quarter 2019 financial results. Farfetch reported a loss of $89.6 million after taxes, compared to a loss of $17.7 million the year prior. Additionally, after previously predicting that its platform gross merchandise value (“Platform GMV”) metric would grow 41% year-over-year, Farfetch announced that it now expected only 30% to 35% year-over-year Platform GMV growth for third quarter 2019, and only 37% to 40% year-over-year Platform GMV growth for full year 2019. Additionally, Farfetch announced that Chief Operating Officer, Andrew Robb, would be stepping down from his position after a six-month transitional period. During Farfetch’s second quarter 2019 earnings call with investors and analysts, Farfetch blamed the disappointing results on competitive pressures from increased promotional pricing and discounting of luxury goods by competitors, despite previous touting of “barriers to entry” and Farfetch’s allegedly “superior” platform.