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SAN FRANCISCO, Sept. 03, 2019 (GLOBE NEWSWIRE) -- Hagens Berman reminds investors in Farfetch Limited (NYSE: FTCH) of the firm’s investigation of possible disclosure violations.
If you invested in Farfetch before August 9, 2019 and suffered losses or have information that may assist this investigation contact Hagens Berman:
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing
The firm’s investigation concerns the veracity of Farfetch’s statements about the Company’s business model, particularly related to the Company’s growth and profitability. These representations allowed Farfetch to go public in September 2018, raising over $880 million.
On May 16, 2019, however, Farfetch released disappointing Q1 2019 results, disclosing accelerating losses. CEO José Neves attempted to allay investor concerns by highlighting the Company’s “excellent growth.”
Then, on August 8, 2019, the Company delivered another disastrous quarter, reporting wider-than-expected losses, including from the Farfetch’s recent $675 million acquisition of New Guards Group. In addition, Farfetch announced that its Chief Operating Officer would be leaving the Company.
In response, analysts at Wells Fargo remarked, “it’s clear that the story has changed meaningfully since the IPO, and Farfetch shares are headed to the ‘penalty box’ . . . .” Likewise, an analyst at Bernstein remarked, “with its credibility in tatters, it would be important for senior management to come forward with a clearer vision for Farfetch—where clarity and simplicity prevail, and where a definite path to profitability is set.” It added: “In the absence of that, investors are likely to stay on the sidelines, fearing more bad surprises.”
This news caused Farfetch shares to crater, losing 44% of their value in a single trading day.
“We’re focused on investors’ losses and whether Farfetch misled investors about the Company’s growth and profitability outlook,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding Farfetch should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email FTCH@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 510-725-3000