Step 1
Unite with Fellow Investors
Step 2
Choose the Best Attorney
Step 3
Provide Documents
Step 4
Follow Case Progress
Step 5
Get Payout
BIRD.US
id: 664, Created by Stan Vick, Scout
Allbirds, Inc. (BIRD) Misleading IPO Case
What do I get by joining?
- You will get case updates and receive a payout in case of success
- If you would like to actively participate, you will be connected to the attorney
- No, you do not pay anything out of your pocket neither to us nor to attorney
N.D. California
Court23-CV-01811
Case number- Allbirds reported higher than the guidance 2022 adj. EBITDA loss.
- $BIRD price fell 47% and closed 92.9% of its $15 IPO price.
- Investors suspect BIRD, Its Leaders & IPO advisers of misleading.
On March 9, 2023, Allbirds, Inc. (BIRD) announced a full-year 2022 adjusted EBITDA loss of $60.4 million, which was higher than the guidance target that estimated an adjusted EBITDA loss of $42.5 million to $37.5 million.
- Allbirds also disclosed in the press release that, in response to these negative results, it created a “strategic transformation plan to reignite growth, improve costs and capital efficiency, and drive profitability.” The plan purportedly focused on four areas: reigniting product and brand, optimizing U.S. stores and slowing the pace of openings, evaluating the transition of international go-to-market strategy, and improving cost savings and capital efficiency.
- Allbirds announced that its CFO was stepping down.
- The same day the Company during a conference call with analysts Joseph Zwillinger, the Company’s Co-CEO, explained that Allbirds’ poor results were driven in part by the fact that Allbirds “overemphasized products that extended beyond our core DNA.” As a result, he explained, “some products and colors have had narrower appeal than expected” and “because we were spending significant time and resources on these new products that did not resonate well, we underinvested in our core consumers’ favorite products.”
On this news, the $BIRD price fell 47% and closed s low as $1.06 per share, a 92.9% decline from the Company’s $15.00 per share IPO price.
Taking all representations and consequent appeared facts into account, Investors have reasons to suspect that $BIRD, Its Officers, and its IPO advisers made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects, specifically:
- Allbirds was overemphasizing products that extended beyond the Company’s core offerings;
- The Company’s non-core products had a narrower appeal and were not resonating with customers as well as the Company’s core products;
- Allbirds was underinvesting in its core consumers’ favorite products to push the Company’s newer products with narrower appeal;
- The underinvesting in Allbirds’ core products was negatively impacting the Company’s sales;
As a result, the positive statements about the Company’s business, operations, and prospects, were materially misleading and lacked a reasonable basis.
Alleged Offence
Mismanagement,
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
09 March 2023
Filing date
13 April 2023
Lead Plaintiff Deadline
12 June 2023
Judge
Hon. Araceli Martinez-Olguin
Collecting participants…
Case history
Stan Vick
28 August 2023
$BIRD Case News:
Investor Allbirds Inc. filed a derivative lawsuit against the company's executives and directors, alleging that the leadership of $BIRD provided false information to investors by failing to disclose a shift in focus away from its main products.