Blue Apron Holdings, Inc. (NYSE: APRN)
During late June 2017, Defendants priced the Company’s IPO for the issuance of approximately 30 million shares at $10.50 per share. By September 25, 2017, the price of Blue Apron shares had fallen over 47% to close at $5.54 on September 25, 2017. In addition, certain of the IPO underwriters have reduced their target price for the stock.
The lawsuit alleges that Defendants did not disclose in the IPO Registration Statement and Prospectus that (a) rather than continuing to significantly increase advertising spending, Blue Apron had already planned to significantly reduce such spending to the detriment of future sales and profit margins, (b) the Company was experiencing problems associated with on time deliveries and complete deliveries to its customers, and (c) it had run into delays with its new factory in Linden, New Jersey.
“Among other things, we’re focused on are the Defendants’ omissions of pre-IPO facts reasonable investors would consider important that, when they surfaced after the IPO, appear to have severely damaged Blue Apron investors,” said Hagens Berman partner Reed Kathrein.
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