NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Blue Apron Holdings, Inc. (“Blue Apron” or the “Company”) (NYSE:APRN) of the October 16, 2017 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Blue Apron stock or options pursuant and/or traceable to the Company’s initial public offering on or about June 29, 2017 (the “IPO”) and/or on the open market between June 29, 2017 and August 9, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/APRN. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Blue Apron securities pursuant and/or traceable to the Company’s IPO and/or on the open market between June 29, 2017 and August 9, 2017. The case, Speiser v. Blue Apron Holdings, Inc. et al, No. 1:17-cv-06517 was filed on August 25, 2017, and has been assigned to Judge Louis Lee Stanton.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and/or misleading statements and/or failing to disclose that: (1) rather than continue to significantly increase spending on advertising, the Company had decided to significantly reduce spending on advertising in Q2 2017; (2) the Company was already experiencing adverse on-time in-full rates, meaning orders were not arriving on time or with all the ingredients needed, which was hurting customer retention; (3) the Company had experienced delays in Q2 2017 with its new factory in Linden, New Jersey; (4) existing and already-materialized delays at the aforementioned factory was resulting in additional delays in new product rollouts; (5) the delays being experienced by the Company would hurt the Company’s bottom line in the near-term; (6) the Company was unable to fully execute its new product initiatives; and (7) Blue Apron had already decided it would be forced to change its strategic approach in managing its business for the remainder of 2017.
Specifically, on August 10, 2017, the Company disclosed that it had encountered delays associated with its new factory in Linden, New Jersey. The Company further revealed that these factory delays were leading to additional delays in new product rollouts, which in turn impeded the Company’s ability to gain new customers and retain existing customers.
Following these disclosures, Blue Apron’s share price declined from $6.24 on August 9, 2017, to a closing price of $5.14 on August 10, 2017 – a $1.10 or a 17.63% drop, and an approximately 50% decline from the Company’s IPO price of $10.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Blue Apron’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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