Panel Says Advertising Statements ‘Too Generalized’ To Support Shareholder Claims

Mealey's (October 20, 2022, 1:42 PM EDT) -- SAN FRANCISCO — A federal district court did not err in dismissing shareholder claims brought against online retail fashion subscription service provider Stitch Fix Inc. and three of its senior executives over misrepresentations allegedly made regarding the company’s expected growth in active clients, because the company’s alleged misstatements were too general to give investors a false impression that Stitch Fix had continued implementing a national television advertising campaign, a Ninth Circuit U.S. Court of Appeals panel ruled on Oct. 19 in affirming....