Blue Apron Holdings Inc (NYSE:APRN) is facing multiple lawsuits that claim it has been misleading investors.
The lawsuits claim that Blue Apron Holdings Inc didn’t properly make known some material information. There are several firms behind these lawsuits. This includes Bragar Eagel and Squire, Bottini & Bottini and a few others. A source at Blue Apron Holdings Inc claims that some of these firms are still seeking plaintiffs for their lawsuits.
While the wording is different between the lawsuits, they mostly focus on the same three following points.
- The company reduced its spending on advertisements in the second quarter of 2017, which leads to reduced revenue in future quarters.
- APRN has been unable to retain customers due to problems with orders.
- There were delays for orders in the second quarter of 2017 due to the construction of its new factory in Linden, N.J.
The lawsuits against Blue Apron Holdings Inc comes as APRN stock faces turbulence following its IPO. The stock is down nearly half from its starting point and further issues aren’t helping. Some are blaming Amazon.com, Inc.’s (NASDAQ:AMZN) acquisition of Whole Foods Market, Inc. (NASDAQ:WFM) for the decline in the stock, reports Tech Crunch.
Gainey McKenna & Egleston is another law firm that is suing Blue Apron Holdings Inc. It lists the same three reasons as stated above for the lawsuit. The firm is also seeking a lead plaintiff for the lawsuit.
APRN stock was down 1% as of Tuesday morning and is down 48% since its IPO in June.
As of this writing, William White did not hold a position in any of the aforementioned securities.