Stitch Fix to Pay $32 Million to End Investor ‘Direct Buy’ Suit

Stitch Fix Inc. agreed to cough up $32 million to resolve allegations the online clothing company and top executives concealed an online-buying option was cannibalizing its core subscription product.

Investors asked Judge P. Casey Pitts Tuesday to preliminarily approve the deal and certify a settlement class of those who got Stitch Fix stock from June 9, 2020, through June 9, 2022. If finally approved in the US District Court for the Northern District of California, the deal would end more than three years of litigation over whether founder and executive chairperson Katrina Lake and former CEO Elizabeth Spaulding knew about ...