Federal Securities Class Action Filed Against Farfetch for Misleading Investors, Deadline Set for December 19, 2023

Farfetch accused of hiding slowdown in growth and onboarding challenges impacting its Reebok partnership, resulting in significant negative revenue impact and failure to meet financial expectations.

• Farfetch faces a federal securities class action filed by legal firm Faruqi & Faruqi, LLP, that alleges the company misled investors, with plaintiffs required to join before a set deadline of December 19, 2023.
• The lawsuit claims that Farfetch concealed a significant slowdown in growth, particularly in the U.S and China, and had encountered onboarding challenges impacting the launch of its partnership with Reebok.
• The legal action alleges Farfetch downplayed or overstated its ability to manage supply chain and inventory challenges, which significantly impacted its revenue and Gross Merchandise Volume (GMV) growth and led to its failure to meet market expectations for Q2 2023's financial results.
• In August 2023, Farfetch issued disappointing Q2 2023 financial results; recording a revenue of approximately $572 million, significantly less than the market forecast of $650.71 million. It also reduced its revenue forecast for FY 2023 from $2.9 billion to $2.5 billion, compared to analysts' estimates of $2.8 billion.
• News of Farfetch's underwhelming performance triggered a stock price plunge, with its Class A ordinary shares undergoing a 45.17% decrease to close at $2.61 per share on August 18, 2023.

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