Philadelphia, Pennsylvania--(Newsfile Corp. - November 19, 2024) - Kaskela Law LLC announces that it is investigating Fox Factory Holding Corp. (NASDAQ: FOXF) ("Fox Factory") on behalf of the company's long-term shareholders.
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Recently a securities fraud complaint was filed against Fox Factory on behalf of certain investors who purchased shares of the company's stock between May 6, 2021 and November 2, 2023. According to the complaint, during that time period Fox Factory and certain of the company's senior executive officers made a series of materially false and misleading statements concerning the true level of consumer demand for the company's bicycles after a period of hyper demand following the onset of the COVID-19 pandemic.
As further detailed in the complaint, consumer demand for bikes quickly began to wane during 2021 and by October 2021, demand for bicycles had fallen back to, or below, pre-pandemic levels, which caused the company's customers to request that shipments of existing orders be delayed and/or outright cancelled. However, during the relevant period the defendants consistently characterized demand for the company's products in positive manners.
On November 2, 2023, Fox Factory shocked the market when it reported disappointing quarterly financial and operational results, including a decline of 58% in the bicycle division, and a reduction of its fiscal 2023 guidance. Following this disclosure, shares of Fox Factory's common stock declined $22.60 per share, or over 37% in value, to close at $60.53 per share on November 3, 2023, on unusually heavy trading volume.
The investigation seeks to determine whether the members of Fox Factory's board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.
Fox Factory shareholders who purchased or acquired FOXF shares prior to October 2021 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 - 0750 for additional information about this investigation and their legal rights and options. Alternatively, investors may submit their information to the firm by clicking on the following link (or if necessary, by copying and pasting the link into your browser):
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis. For additional information about Kaskela Law LLC please visit .
CONTACT:
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
(skaskela@kaskelalaw.com)
Adrienne Bell, Esq.
(abell@kaskelalaw.com)
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(484) 229 - 0750
(888) 715 - 1740
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