New York-based law firm Bronstein, Gewirtz & Grossman, LLC has filed a class action lawsuit against Fox Factory Holding Corp. (“Fox Factory”) and certain officers of the company. The lawsuit seeks to recover damages for alleged violations of federal securities laws on behalf of investors who purchased or acquired Fox Factory securities between May 6, 2021, and November 2, 2023.
According to the complaint, Fox Factory, which manufactures high-performance suspension products, made misleading statements and omissions throughout the class period regarding the company’s business, financial condition, and prospects. Specifically, they misled the market about the demand for their products and inventory levels.
The lawsuit alleges that on November 2, 2023, Fox Factory filed a Form 8-K with the Securities and Exchange Commission (SEC), disclosing a 19.1% year-over-year decrease in net sales for the third quarter of fiscal year 2023. The company cited higher levels of inventory as the cause for this decline and also lowered its full-year sales guidance. As a result, the price of Fox Factory’s common stock dropped by 37.34% on November 3, 2023.
The complaint states that the defendants’ actions and omissions led to significant losses and damages for the plaintiff and other class members. A copy of the complaint can be obtained from Bronstein, Gewirtz & Grossman’s website or by contacting the firm directly.
Investors who suffered a loss in Fox Factory have until April 22, 2024, to request appointment as lead plaintiff in the case. Bronstein, Gewirtz & Grossman represents investors in class actions on a contingency fee basis, meaning they will be reimbursed for expenses and fees only if successful in recovering damages.
Bronstein, Gewirtz & Grossman is a reputable law firm with a track record of recovering millions of dollars for investors in securities fraud class actions and shareholder derivative suits.
Bronstein, Gewirtz & Grossman, LLC operates in the legal industry, specifically focusing on securities fraud class actions and shareholder derivative suits. As a New York-based law firm, they provide legal representation for investors who have suffered losses due to alleged violations of federal securities laws.
The class action lawsuit filed by Bronstein, Gewirtz & Grossman against Fox Factory Holding Corp. brings attention to the issues within the manufacturing industry, particularly in relation to high-performance suspension products. Fox Factory is a company that manufactures these products, which are used in various applications such as off-road vehicles, bicycles, and motorcycles.
The lawsuit alleges that Fox Factory made misleading statements and omissions regarding the company’s business, financial condition, and prospects. Specifically, they misled the market about the demand for their products and inventory levels. This raises concerns not only about the specific company but also about industry practices and transparency.
The complaint highlights a significant event that occurred on November 2, 2023. Fox Factory filed a Form 8-K with the Securities and Exchange Commission (SEC), revealing a 19.1% year-over-year decrease in net sales for the third quarter of fiscal year 2023. The company attributed this decline to higher levels of inventory and revised its full-year sales guidance accordingly. Consequently, Fox Factory’s common stock price plummeted by 37.34% on November 3, 2023.
This case sheds light on the challenges faced by the manufacturing industry, including issues related to demand forecasting, inventory management, and financial performance. It raises questions about the accuracy and transparency of companies’ disclosures and their impact on investors.
For more information about the law firm Bronstein, Gewirtz & Grossman or to obtain a copy of the complaint, interested individuals can visit their website or contact the firm directly. The law firm operates on a contingency fee basis, meaning they will be reimbursed for expenses and fees only if they are successful in recovering damages for their clients.
Market forecasts specific to the high-performance suspension products industry or Fox Factory Holding Corp. were not mentioned in the article. However, individuals interested in exploring market forecasts or gaining a deeper understanding of the industry can refer to reputable industry publications or research reports for relevant information.
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