Fox Factory Leaders Sued Over Pandemic Boom, Bust in Bike Parts

Fox Factory Holding Corp.'s board members and top executives misleadingly touted strong demand for bicycle suspension products throughout the Covid-19 pandemic until the part maker announced a 59% drop in sales in November 2023, an investor alleges.

The directors and officers knew the early-pandemic boom in demand for bicycles was temporary and that bike makers were overstocked with Fox shock absorbers, forks, and other products, Daniel Bardos says on behalf of the company. The leaders’ failure to disclose lower consumer demand and the accumulating inventory harmed the company, Bardo says in his derivative complaint filed Wednesday in the US District ...