On July 9, 2025, a federal judge ruled that key claims in a securities fraud lawsuit against Stitch Fix, its former CEO, and founder can move forward. Judge P. Casey Pitts of the U.S. District Court for the Northern District of California made the decision, allowing the litigation to advance.
The lawsuit alleges that Stitch Fix misled investors between June 2020 and June 2022 by falsely stating that its Freestyle business segment would complement and add to its core Fix business. The complaint claims these statements caused Stitch Fix's stock to trade at artificially inflated prices.
The court found that the complaint sufficiently alleged that the defendants made false and misleading statements with an intent to defraud. This development indicates potential legal and financial risks for Stitch Fix, as the lawsuit proceeds to address these serious allegations.
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