PHILADELPHIA, March 23, 2025 (GLOBE NEWSWIRE) -- Berger Montague PC advises investors that a securities class action lawsuit has been filed against Crocs, Inc. (“Crocs” or the “Company”) (NASDAQ: CROX) on behalf of purchasers of Crocs securities between November 3, 2022 through October 28, 2024, inclusive (the “Class Period”).
Investor Deadline: Investors who purchased or acquired CROCS securities during the Class Period may, no later than MARCH 24, 2025, seek to be appointed as a lead plaintiff representative of the class. To learn your rights, CLICK HERE.
Crocs, headquartered in Bloomfield, CO, is a marketer of casual footwear. In February 2022, Crocs acquired HEYDUDE, another brand of casual, lightweight footwear.
According to the lawsuit, Crocs misled investors by concealing the fact that the strong revenue growth exhibited by HEYDUDE following its acquisition in February 2022 was largely driven by a conscious decision on the part of Crocs management to aggressively stock its third-party wholesaler pipeline with HEYDUDE products, regardless of the level of retail demand being experienced by those wholesalers.
Moreover, after the Company’s retail partners began to destock this excess inventory, Crocs further misled investors by concealing that waning product demand for HEYDUDE shoes would further impact the Company’s financial results.
Investors learned the truth about HEYDUDE’s prospects through a series of partial disclosures, and then finally, on October 29, 2024, in reporting its financial results for the third quarter of 2024, Crocs disclosed that HEYDUDE revenues fell below the Company’s expectations and that “it will take longer than we had initially planned for the business to turn the corner.” Significantly, Crocs’ CEO attributed HEYDUDE’s struggles to “excess inventories in the market,” admitting that “in retrospect, we absolutely shipped too much product[].” The CEO further acknowledged that a lack of product demand exacerbated the issue.
On this news, the price of Crocs shares declined by $26.47 per share, or 19%, from a close of $138.05 per share on October 28, 2024 to a close of $111.58 per share on October 29, 2024.
To learn your rights or for more information, CLICK HERE or please contact Berger Montague: Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Peter Hamner at phamner@bm.net.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contact:
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
Peter Hamner
Berger Montague PC
phamner@bm.net
