Robbins LLP: Blue Apron Holdings, Inc. (APRN) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Blue Apron Holdings, Inc. (NYSE: APRN) in the U.S. District Court for the Eastern District of New York. The complaint is brought on behalf of all purchasers of Blue Apron securities pursuant to the company’s initial public offering (“IPO”), for alleged violations of the Securities Act of 1933 by Blue Apron’s officers and directors. Blue Apron operates an e-commerce marketplace that delivers original recipes and fresh ingredients for making home cooking accessible.
Blue Apron Accused of Filing Misleading Registration Statement
According to the complaint, in connection with its IPO, Blue Apron submitted a registration statement with the U.S. Securities and Exchange Commission emphasizing that the company aimed to invest in marketing to drive customer acquisition and planned to introduce new products to increase the company’s sales and profits. However, the complaint alleges that Blue Apron’s registration statement neglected to disclose that the company had already decided to reduce spending on advertising, that the company’s orders were not arriving on time or with all the ingredients needed, and that the company had encountered delays with its new factory. As a result, customer retention suffered, Blue Apron’s bottom line was negatively affected, and new product rollouts were delayed, which limited the company’s ability to gain new customers and retain existing ones. When news of Blue Apron’s struggles hit the market, the company’s stock closed at $5.14 per share on August 10, 2017—almost half of its IPO price of $10.
Blue Apron Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.