Stitch Fix Shareholder Sues Founder, Board Over ‘Direct Buy’ Hit

Stitch Fix Inc.'s current and former board members allegedly hid that the clothier’s new purchasing option was undercutting its core curated box subscription while some insiders wrongly sold more than $102 million in stock.

Founder Katrina Lake sold more than $69.2 million’s worth while former CEO Elizabeth Spaulding sold over $1.47 million, said a shareholder’s complaint filed in the US District Court for the Northern District of California on Tuesday. Ex-board members Marka Hansen sold more than $3.07 million and Mike Smith, who was also once a Stitch Fix executive, sold almost $18.1 million, according to the shareholder derivative action. ...