SAN DIEGO--(BUSINESS WIRE)--The Class: Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Allbirds, Inc. (NASDAQ: BIRD) (a) Class A common stock pursuant to and/or traceable to the registration and prospectus issued in connection with the Company's initial public offering ("IPO") or (b) between November 4, 2021 and March 9, 2023. Allbirds is a footwear and apparel company. Footwear represents the majority of the Company’s revenue and brand.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Allbirds. Shareholders who want to act as lead plaintiff for the class must file their papers by June 12, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: Allbirds, Inc. (BIRD) Misled Investors in its Documents Supporting its IPO
According to the complaint, on November 4, 2021, the Company filed its prospectus on Form 424B4 with the SEC, which forms part of the Registration Statement. In the IPO, the Company sold approximately 16,850,799 shares of Class A common stock at a price of $15.00 per share.
However, the Registration Statement was false and misleading and failed to disclose that: (1) Allbirds was overemphasizing products that extended beyond the Company’s core offerings; (2) the Company’s non-core products had a narrower appeal and were not resonating with customers as well as the Company’s core products; (3) Allbirds was underinvesting in its core consumers’ favorite products to push the Company’s newer products with narrower appeal; and (4) underinvesting in Allbirds’ core products was negatively impacting the Company’s sales.
On March 9, 2023, the Company announced fourth quarter 2022 earnings, including a net loss of $24.9 million and a full year 2022 net loss of $101.4 million. The same day, Allbirds announced its Chief Financial Officer was stepping down. On this news, the Company’s stock price fell $1.11, or 47%, to close at $1.25 per share on March 10, 2023, injuring investors. By the commencement of the class action, the Company’s stock price had closed as low as $1.06 per share, a 92.9% decline from the Company’s $15.00 per share IPO price.
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