NEW YORK, Feb. 08, 2025 (GLOBE NEWSWIRE) — Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Crocs, Inc. (NASDAQ: CROX) and certain of the Company’s senior executives for potential violations of the federal securities laws.
If you invested in Crocs, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/crocs-inc.
Investors have until March 24, 2025, to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased Crocs common stock. The case is pending in the U.S. District Court for the District of Delaware and is captioned Carretta v. Crocs, Inc., et al., No. 25-cv-00096.
Why was Crocs Sued for Securities Fraud?
Crocs is a casual lifestyle footwear brand. In February 2022, the Company completed its acquisition of HEYDUDE, a footwear brand focusing on casual, comfortable, and lightweight footwear. As alleged, Crocs’s CEO, Andrew Rees, assured investors that Crocs would not “play the game of forcing inventory into [wholesalers] and getting them overstocked.”
However, in truth, it is alleged that HEYDUDE’s revenue growth for 2022 was driven, in large part, by Crocs’s efforts to aggressively stock its third-party wholesaler pipeline with HEYDUDE products, regardless of the level of retail demand being experienced by those wholesalers.
The Stock Declines as the Truth is Revealed
On April 27, 2023, the Company revealed that much of HEYDUDE’s revenue growth in 2022 was attributable to efforts to stock the Company’s wholesale partners with HEYDUDE products and was not necessarily indicative of actual downstream retail sales. On this news, the price of Crocs common stock declined $23.46 per share, or nearly 16%, from $147.78 per share on April 26, 2023, to $124.32 per share on April 27, 2023.
Then, on October 29, 2024, the Company reported disappointing financial results for the third quarter of 2024 given continued struggles at HEYDUDE. Crocs attributed the struggles to “excess inventories in the market” and admitted that “if you think about this sort of [20]22 into [20]23 timeframe, in retrospect, we absolutely shipped too much product[],” calling that decision “wrong” and highlighting that a lack of product demand exacerbated the issue. On this news, the price of Crocs stock declined $26.47 per share, or approximately 19%, from $138.05 per share on October 28, 2024, to $111.58 per share on October 29, 2024.
Click here if you suffered losses: https://www.bfalaw.com/cases-investigations/crocs-inc.
What Can You Do?
If you invested in Crocs you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/crocs-inc
Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/crocs-inc
Attorney advertising. Past results do not guarantee future outcomes.
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