Stitch Fix Inc. and former top executives must defend against investor allegations the online clothing company hid that its new online purchasing offering was cannibalizing its core subscription product, a federal judge ruled.
The shareholders plausibly alleged that Stitch Fix founder Katrina Lake and former CEO Elizabeth Spaulding knew about internal data showing its “direct buy” option was hurting the company’s ability to attract new customers when touting it as additive, Judge P. Casey Pitts said. The US District Court for the Northern District of California partially dismissed the proposed class action’s claims in a Wednesday order.
The stockholders ...
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