FIGS Insiders Reaped $1 Billion in Stock Sales, Investor Says

FIGS Inc. executives and board members misled the investing public about the apparel company’s management capabilities, allowing its co-founders and others to make insider sales of stock garnering about $1 billion, an investor alleges.

The executives and directors of the premium medical scrubs maker “created a misleading impression that FIGS had an exceptionally effective and low-risk merchandising model, supported by advanced data-related capabilities” and reliable styles, stockholder Paige McMurtrie says.

But the company allegedly had difficulties with demand, inventory, and the costs of air freight and storage, she said in her derivative suit June 2 in the US District Court ...