Deadline Reminder: Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against FIGS, Inc. (FIGS)

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming January 3, 2023 deadline to file a lead plaintiff motion in the case filed on behalf of FIGS, Inc. (“FIGS” or the “Company”) (NYSE: FIGS) investors who purchased: (a) securities between May 27, 2021 and May 12, 2022, inclusive (the “Class Period”); and/or (b) stock pursuant and/or traceable to the Offering Documents issued in connection with the Company’s May 2021 initial public offering (“IPO”).

Investors suffering losses on their FIGS investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [e-mail].

In May 2021, FIGS completed its IPO, selling approximately 34.3 million shares of Class A common stock for $22 per share.

On May 12, 2022, FIGS announced disappointing financial results, adjusting its expected sales, gross margins, and EBITDA due to supply chain issues. The Company also admitted that it had continued to rely on air freight instead of the less expensive option of overseas shipping, despite previous claims that air freight was transitory.

On this news, FIGS’s stock fell $3.21, or 25%, to close at $9.64 per share on May 13, 2022, significantly below the IPO price, thereby injuring investors.

The complaint filed in this class action alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants: (1) inflated the Company's true ability to successfully secure repeat customers; (2) failed to disclose the Company's increasing dependence on air freight; (3) inflated the expected net revenues, gross margin, and adjusted EBITDA margin for 2022; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased or otherwise acquired FIGS securities, you may move the Court no later than January 3, 2023 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at [phone], toll-free at [phone], or by email to [e-mail], or visit our website at www.howardsmithlaw.com.

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