SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Allbirds, Inc. of Class Action Lawsuit and Upcoming Deadline - BIRD
NEW YORK, May 19, 2023 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Allbirds, Inc. ("Allbirds" or the "Company") (NASDAQ: BIRD), and certain officers and directors. The class action, filed in the United States District Court for the Northern District of California, and docketed under 23-cv-02372, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired: (a) Allbirds Class A common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the "Registration Statement") issued in connection with the Company's November 2021 initial public offering ("IPO" or the "Offering"); and/or (b) Allbirds securities between November 4, 2021 and March 9, 2023, inclusive (the "Class Period"). Plaintiff pursues claims against Defendants under the Securities Act of 1933 ("Securities Act") and the Securities Exchange Act of 1934 ("Exchange Act").
If you are a shareholder who purchased or otherwise acquired (a) Allbirds Class A common stock pursuant and/or traceable to the Registration Statement issued in connection with the Company's IPO, and/or (b) Allbirds securities during the Class Period, you have until June 12, 2023 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Allbirds is a footwear and apparel company. Footwear represents the majority of the Company's revenue and brand. Its core products include lifestyle and performance shoes, such as the Dasher and the Runner.
On November 4, 2021, the Company filed its prospectus on Form 424B4 with the U.S. Securities and Exchange Commission, which forms part of the Registration Statement. In the IPO, the Company sold approximately 16,850,799 shares of Class A common stock at a price of $15.00 per share. The Company received proceeds of approximately $237 million from the Offering, net of underwriting discounts and commissions. The Company stated that it intended to use the net proceeds from the Offering for "general corporate purposes, including working capital, operating expenses and capital expenditures."
In the Registration Statement and throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (i) that Allbirds was overemphasizing products that extended beyond the Company's core offerings; (ii) that the Company's non-core products had a narrower appeal and were not resonating with customers as well as the Company's core products; (iii) that Allbirds was underinvesting in its core consumers' favorite products to push the Company's newer products with narrower appeal; (iv) that underinvesting in Allbirds' core products was negatively impacting the Company's sales; and (v) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On March 9, 2023, after the market closed, the Company issued a press release announcing a fourth quarter 2022 net loss of $24.9 million and a full year 2022 net loss of $101.4 million. The Company also announced a full year 2022 adjusted EBITDA loss of $60.4 million, which was higher than the guidance target that estimated an adjusted EBITDA loss of $42.5 million to $37.5 million. Allbirds also disclosed in the press release that, in response to these negative results, it created a "strategic transformation plan to reignite growth, improve costs and capital efficiency, and drive profitability." The plan purportedly focused on four areas: reigniting product and brand, optimizing U.S. stores and slowing the pace of openings, evaluating transition of international go-to-market strategy, and improving cost savings and capital efficiency.
Also on March 9, 2023, after the market closed, Allbirds announced that its Chief Financial Officer, Michael Bufano, was stepping down.
That same day the Company held a conference call with analysts to discuss its fourth quarter 2022 results. On the call, Defendant Joseph Zwillinger, the Company's Co-Chief Executive Officer, explained that Allbirds' poor results were driven in part by the fact that Allbirds "overemphasized products that extended beyond our core DNA." As a result, he explained. "some products and colors have had narrower appeal than expected" and "[b]ecause we were spending significant time and resources on these new products that did not resonate well, we underinvested in our core consumers' favorite products."
On this news, the Company's stock price fell $1.11, or 47%, to close at $1.25 per share on March 10, 2023, thereby injuring investors.
By the commencement of this action, the Company's stock price had closed as low as $1.06 per share, a 92.9% decline from the Company's $15.00 per share IPO price.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
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