Stitch Fix Investors Sue Over Ad Stoppage, Subscriber Drop

Clothing subscription service Stitch Fix Inc. allegedly misled investors about pulling back from television advertising and the effect that would have on the company’s growth rate, a new suit alleges.

Stitch Fix didn’t tell investors it planned to stop running television ads and didn’t warn them that doing so would further slow subscriber growth, according to the Nov. 16 would-be class complaint.

Subscribers pay a monthly styling fee in return for a box with a personalized selection of clothing and accessories. Part of the fee goes toward their purchase of any of that month’s offerings. Subscribers who’ve purchased something ...