FIGS Inc. shareholders failed to adequately support their proposed class claims against the specialized clothing company over alleged marketing, inventory, and shipping misrepresentations, a federal court ruled.
The investors didn’t show the “athleisure"-style scrubs company or its leadership had the necessary level of intent for securities fraud, Judge Otis D. Wright II said Wednesday for the US District Court for the Central District of California. They also didn’t show that those defendants, or others involved with FIGS’ initial and secondary offerings, had a level of knowledge supporting liability for alleged misstatements in registration or prospectus documents, Wright said.
The investors ...
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