NEW YORK - January 30, 2025 (NEWMEDIAWIRE) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Crocs, Inc. (“Crocs” or the “Company”) (NASDAQ: CROX) on behalf of investors that purchased or otherwise acquired Crocs securities between November 3, 2022 and October 28, 2024 (the “Class Period”).
If you are an investor in Crocs and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing pmayer@kaplanfox.com or by calling (646) 315-9003.
DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than March 24, 2025 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process.
Prior to the Class Period, in February 2022, Crocs completed its acquisition of HEYDUDE, a footwear brand focusing on casual, comfortable, and lightweight footwear.
According to the complaint, during the Class Period, Crocs Chief Executive Officer Andrew Rees (“CEO Rees”) assured investors that “our wholesale customers are being really prudent in terms of how they manage their business, in terms of managing their overall inventory levels []” and “we’re not going to play the game of forcing inventory into them and getting them overstocked.”
Investors allegedly began to learn the truth about the nature and unsustainability of HEYDUDE's revenue growth on April 27, 2023, when Defendant CEO Rees revealed during the Company's first quarter 2023 earnings call 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. Following this news, the price of Crocs common stock declined $23.46 per share, or nearly 16%, to close at $124.32 per share on April 27, 2023.
Further, as alleged in the complaint, Defendants subsequently made a number of additional disclosures which revealed that Crocs had intentionally made significant sales to the Company's major retail and wholesale partners, rather than gradually increasing third-party HEYDUDE inventory over several years to reflect actual retail demand for the product.
Finally, on October 29, 2024, During the Company’s third quarter conference call, CEO Rees revealed that “HEYDUDE’s recent performance and the current operating environment are signaling it will take longer than we had initially planned for the business to turn the corner.” CEO Rees attributed these struggles to “excess inventories in the market” and admitted that “we’ve made good progress, but frankly, not quite all the progress we want to make” in resolving the inventory issue. CEO Rees further 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. Following this news, the price of Crocs common stock declined $26.47 per share, or approximately 19.2%, to close at $111.58 per share on October 29, 2024.
WHY CONTACT KAPLAN FOX - Kaplan Fox is a leading national law firm focusing on complex litigation with offices in New York, Oakland, Los Angeles, Chicago and New Jersey. With over 50 years of experience in securities litigation, Kaplan Fox offers the professional experience and track record that clients demand. Through prosecuting cases on the federal and state levels, Kaplan Fox has successfully shaped the law through winning many important decisions on behalf of our clients. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.
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If you have any questions about this Notice, your rights, or your interests, please contact:
CONTACT:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
lking@kaplanfox.com
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